Bull Set To Nap

We’ve felt this Bull has been tired over the past few sessions, and have further confirmation Thursday with modest distribution settling into the close on the major indexes.

None of the evidence against the Bull is strong enough for us to shift our bias down from Buyer’s Edge. Pullbacks are healthy.

When the market retreats we gain a better understanding of where the strong and weak sectors are, with the weak selling hardest and the strong the least.

Stay tuned.

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3D Printer Bull Stumbles

We weren’t surprised to see sudden sell offs with 3D printing stocks DDD and SSYS. We’ve thought they showed signs of being tired for about a week now.

Meanwhile, the broader market appears firm as the major indexes and key sectors hold convincingly above major moving averages. Yet this strength is also due for a pullback. We’d be suspicious of any gap up in the morning session, and use it as a possible opportunity go go short.

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Creme De La Creme

This week’s Tier 1 Group, representing the best of quarterly and yearly earnings growth:

STOCK COMPANY INDUSTRY
AEG AEGON N.V. INSURANCE – Life Insurance
CAMP Calamp Corp TELECOMMUNICATIONS – Communication Equipment
EGHT 8×8 Inc TELECOMMUNICATIONS – Communication Equipment
EXR Extra Space Storage Inc REAL ESTATE – REIT – Diversified/Industrial
HCA HCA Holdings, Inc. HEALTH SERVICES – Hospitals
HNP Huaneng Power Intl Inc UTILITIES – Electric Utilities
LNDC Landec Corporation CHEMICALS – Chemicals – Major Diversified
MLNX Mellanox Technologies Ltd ELECTRONICS – Semiconductor – Broad Line
NTE Nam Tai Electronics Inc ELECTRONICS – Diversified Electronics
PDFS Pdf Solutions COMPUTER SOFTWARE & SERVICES – Technical & System Software
SNTS Santarus Inc DRUGS – Biotechnology
STX Seagate Tech Hldgs COMPUTER HARDWARE – Data Storage Devices
TOL Toll Brothers Inc MATERIALS & CONSTRUCTION – Residential Construction
WGO Winnebago Industries Inc AUTOMOTIVE – Recreational Vehicles

Keep On Chooglin’

“But if you’re a natural man, You got to ball and have a good time, and that’s what I call chooglin’.” Keep On Chooglin’ Lyrics, Credence Clearwater Revival

More breakout action from the broad market. We’re riding this buying spree with a handful of top stocks, holding on until the action tells us otherwise.

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https://www.youtube.com/watch?v=EKuHNt9gUn8

Just A Kiss Away

Strange, murder.

The SPX closed just under its high made last fall. We’re liking the broad market participation. We expect a new high to be made with the Dow and Naz following suit.

More rationally, we expect more upside as long as the evidence we collect remains bullish. Anything can change. Always be ready to change.

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Recent buys in SSYS and DDD are experiencing some heavy selling. Don’t take this lightly. Volume like this often precludes pullbacks and corrections. That’s why we shed half positions while setting a stop loss for the remainder at break even.

Green Lights

Growth Stocks chug higher as our market bias remains bullish.

We’ve found out top stocks based on solid growth fundamentals. We stalked them while in bases before buying on breakouts.

It’s sit back and watch mode for us. We’ll be sure not to let any profits turn to losses. We’ll reel shares in as targets are hit.

Meanwhile, we keep a steady eye on the broader market, which continues to give off indications of strength. Tuesday’s minor distribution means little.

We like key sectors such as Transportation, Semiconductors and Retail trending above major moving averages.