This Week’s Sunday Stock Report – 9/16/18
– James F. Taulman, former Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.
1 BreakOut This Past Week | 7 Stocks on Our WatchList for the Week
All three major indexes posted solid weekly gains as each built on rallies from previous noted, well-defined support.
For the week, the Dow rose +0.9%, while the Nasdaq gained+1.4%, and the S&P 500 added +1.2%.
At current levels, the S&P is just -0.4% below its record close set in late August, while both the Dow and the Nasdaq are within -2% of their all-time highs.
The Dow booked its fourth positive week of the past five. The recent gains have taken it to the highest level since late January. This week the blue chips briefly tagged seven-month highs early Friday and went on to close well above the 26,ooo mark, ending the week at 26,155.
The Nasdaq posted its third positive week of the past four as the tech-laden index traded up from found support near its 50-day moving average and a near-coinciding upward trendline. (see chart)
Chart courtesy of stockcharts.com.
The S&P 500 gained actually less than a point on Friday, but that was enough for a fifth straight positive day, narrowly notching its longest win streak in about seven months. The S&P 500 ended its ninth positive week of the past 11.
Also of note, small caps were the strongest performers Friday as the Russell 2000 ended with a daily gain of +0.5% and up +0.5% on the week.
The market rallied in large part on hopes for new U.S.-China trade talks as trade continues to be the biggest concern among investors. Late this past week, news broke that President Trump is expected to impose more tariffs of $200 billion on Chinese goods, and China is, of course, mulling a retaliation of its own.
In economic data, U.S. retailers posted the weakest sales in August in six months. Meanwhile, the import-price index sank -0.6% in August while industrial production rose +0.4%, representing a third monthly increase.
I ran my regular stock screens and added 4 new stock to our watch list this week.
We now have a total of 7 stocks which we will be watching for a potential breakout next week. (see below)