It was a better week for stocks as all the major averages made gains. The Nasdaq Composite advanced the most, capping the shortened trading week +2.0%. The New York Stock Exchange came in a close second with a +1.8% gain, followed by the benchmark S&P 500 Index which added+1.4%. The lagging Dow Jones Industrials ended up +0.8%.
As the market made gains, volume was stronger for most of the week, and that is encouraging as we await a proper Follow-Through Day. Also, the 52 week high versus 52 week low list is looking better. However, the Dow, as well as the S&P 500 and the NYSE Composite all remain below their respective 50-day moving averages. The leading Nasdaq looks the best technically with its recent and successful test of its 50 DMA, coupled with this week’s advance, which put this tech index within less than 1% of decade old highs.
As far as the individual stocks that we are following, we again had no new breakouts from our watch list. Our most recent breakout, SSYS which triggered our technical buy signal on Aug 8th, finally had a losing week (-0.8%) after it had traded higher for five consecutive weeks. It closed this week at $106.38 which is fairly well above our buy price of $95.15.
We now have five stocks on our watch list, since I am cutting CPA this week as it has fallen below its 50 DMA and more recently the group rank has eclipsed the lower threshold.
Somewhat surprisingly, several of our current holdings acquired during the previous rally, MX , EVR and YNDX actually broke out again this past week. So, I can now raise their respective fist support levels up, helping us to hopefully capture more profits in the event of a pullback. Premium Members can refer to those price points along with other specific trading criteria on all of our selections in the table below. The remainder of our holdings such as JAZZ, TRIP, PKG, and the aforementioned SSYS continue, for the most part, to perform rather well technically, while maintaining their high ranks and, at the least, decent fundamentals.
Looking forward to next week, Monday will mark Day 8 of the current rally attempt. We are watching for a proper Follow-Through Day with a one day gain of at least +1.5% on one of the major averages with an increase in volume. In the meantime, we will pay close attention to our current positions, while maintaining a watch list of high-ranked buy candidates that are setting up technically in proper bases of consolidation. Simple as that. See the table directly below (Premium Members Only).