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Stock Market Update: Week of July 18th
We're seeing some positive signs in stocks. Energy relief rally?
I know you’re probably sick of the bear market.
For growth investors, you’ve had many false breakouts to new highs.
For value investors, what you bought as “cheap” just got cheaper.
Needless to say, this market has been a traders market.
But hang in there, because I’m seeing some really positive signs…
The Week Ahead: Positive for Stocks
Didn’t watch the video? Here are the highlights.
1. The S&P 500 is holding the 38.2% retracement (weekly)
2. We’re also seeing increased institutional money flow on increased volume last week (reversal point 6).
3. The VIX is plummeting… very good for stocks. Notice the long upper shadows, which is very bearish for fear and bullish for stocks.
Stocks On My Watchlist: Solid Earnings Growth
Here are the high growth stocks I’m watching for potential breakouts. All of them exhibit double digit quarterly revenue and EPS growth.
Almost all of them have a fundamental driver from a recessionary, fossil fuel-based economy…
These stocks all have insane institutional money flows because they have insane Earnings Per Share growth. They’re all very profitable benefiting from major demand in the economy, as exhibited by their sales growth.
Use this research tool to look at their EPS and sales growth stats.
Earnings Season Underway
Be careful not to be overly exposed to a stock ahead of its earnings. We are in the middle of earnings season and could be in for some big surprises, high or low.
Check the earnings calendar before buying anything, and keep your stops tight.
Sell Any Rips in Energy?
Energy remains bearish on the monthly charts, and looks like a relief rally on the daily charts. Therefore I will be looking to sell any rip higher in energy by watching for a bearish reversal on the 4 hour charts.
Conclusion: S&P Resistance Overhead
Stocks look bullish, and volatility looks bearish. The bias in stocks is to the upside. Any rally will need good news to sustain it. Expect resistance around 4100 on the S&P.
A break through these levels on high volume and money flow means a bottom, just maybe, is here. Any sell off will send the S&P back to 3,500 as potential support.