Indexes are stuck in a range that threatens to resume its falling pattern. However, in light of the possibility of no rate hike this year and that people just don't care much about the Fed anymore - which is good in a way - markets continue to fight on and have a very good October so far.
It is difficult to see where coming months go, but, the next couple weeks look rough. There continues to be lack of interest from retail, which tells me, after a brief correction, we will see one heckuva a rally to suck people in. I could be wrong. This market is about as messed up as it can be. So, the message is continue to be cautious and selective, but have about half of your money in quality equities and equities with big upside on inflationary events - like QE or war that blows up oil production.
There is nothing worth buying in ETF land with the possible exception of selling puts on FCG if you are not over-weight in natural gas stocks already. There are plenty of short candidates if you feel adventurous. On a daily timeframe the SPY is overbought and is the basis of a swing trade I have posted.
The Dow is gross.
Macy's M, Buckle BKE and Gap GPS continue to set-up for a seasonal buy. Expect me to do a swing trade in those very soon. I've made nice 20-30% gains in those before in about 2 months. Could pull that off again if the stars, err, algos, align.
You could sell out of Total TOT and hope to buy back if you want, otherwise, it's a hold or buy on a correction.
Exact Sciences EXAS isn't just a buy, it's a screaming buy on any pullbacks. Estimates came down around 2/3 by some analysts on what amounts to an ambiguous at worst (though I think Cologuard has an "A" rating from USPSTF) a panel statement that affects 1/3 of addressable market. That doesn't make any sense.
SunEdison SUNE has been basing and is still oversold. If you aren't fully weighted in this company, I encourage you to buy on any weakness the next couple weeks. I think SUNE is our best bet at a 10 bagger from here (though EXAS is close) by the end of the decade.
The next few months could present an amazing opportunity in oil and gas stocks for those not already too heavily invested. I plan to be a buyer. I will be adding names to our lists for next week.
This is the last week I will be posting a list of algorithms as it seems a bit out of context on its own. I will be sharing research from multiple sources going forward instead in order to give a more comprehensive view of the market trends. In addition, I will be adding a new set of statistics on a monthly basis. Market based posts will generally be open the public, however, investment specific reports will be subscriber only and on delayed release for the public.