Big tech names sold off as value stocks were bid higher on the heels of the presidential election results. You’ve gotta go with what you see instead of what should be.
|INDEX||WEEKCLOSE||CHANGE||% CHANGE||YTD %|
Monday’s massive rally lost it’s steam by the end of the day as the S&P 500 closed 1.7% off its high on heavy volume. This mark will serve as resistance, while the 50-day moving average serves as support below.
Well above average volume makes for a convincing bullish argument. But watch the distribution on the Nasdaq. Market tops are a process more than they are an event.
|Weekly Advancing/Declining Volume||NYSE: 1.6, NASDAQ: 1.3|
|Accumulation/Distribution Count, 20 Days||S&P 500: 4/3, NASDAQ: 4/5|
|Weekly Advances/Declines, Issues||NYSE: 4.1, NASDAQ: 2.6|
|New Highs||NYSE: 431 (+67%), NASDAQ: 552 (+50%)|
|New Lows||NYSE: 40 (-55%), NASDAQ: 67 (-53%)|
We’re heading into traditionally strong time of year. We’re also seeing a lot of short covering.
Market leadership may be shifting. Let’s watch for new top names to set themselves apart from the pack. So far, we’re seeing healthcare names setup really nicely.
News from Pfizer (PFE, +6.1%) and BioNTech (BNTX, +15.22%) with their COVID vaccine reportedly more than 90% effective in trials could be a game changer for the economy.
Is this the end of the stay-at-home Covid economy? We’ve seen heavy selling in names like Teledoc (TDOC, -11.19%) and eSports ETF (ESPO, -4.86%), to name just a couple tracked here.
Consumer spending is strong as evident with small caps having a massive week as the R2K shot 6% higher with Q3 earnings from the S&P 600 topped expectations by 50%.
TOP DOWN, SECTOR PRICE ACTION & NEWS ANALYSIS
|XLE||Energy Sector Fund||17.11||Bucks a downtrend for the week with a powerful move, but still remains in a larger, two-year downtrend.|
|XLF||Financial Sector Fund||8.29||Shot convincingly above its four-month range. Lots of overhead resistance to cool its jets at these levels.|
|XLI||Industrial Sector Fund||5.43||New high, trend up.|
|XLRE||Real Estate Sector Fund||5.28||Shot convincingly above its four-month range. Lots of overhead resistance to cool its jets at these levels.|
|XLP||Consumer Staples Sector Fund||3.75||New high, trend up.|
|XLU||Utilities Sector Fund||3.06||Approaching new high as it carves the right side of a base.|
|XLV||Health Care Sector Fund||2||New high, trend up.|
|XLB||Materials Sector Fund||1.49||New high, trend up.|
|XLC||Communication Services Sector Fund||0.64||Approaching new high as it carves the right side of a base.|
|XLY||Consumer Discretionary Sector Fund||0.45||New high, trend up.|
|XLK||Technology Sector Fund||-0.31||Approaching new high as it carves the right side of a base.|
Big Tech leadership has cooled.
Apple (AAPL, +0.48%), Microsoft (MSFT, -3.22%), and Facebook (FB, -5.61%) have narrowed their +two-month ranges.
Alphabet (GOOG, +0.87%) bucked the trend as it hit a new high.
Semiconductors (SMH, -0.41%) closed lower after hitting a new high. We want to see the uptrend stick here as the broader market correlated well with its success.
Healthcare (XLV, +2%) hit a new high.
Lots of individual names breaking out and setting up in Biotech (IBB, +2.41%). This theme has been a driving part of this report for months. Nothing new to readers here.
Cannabis (MJ, -4.32%) closed down for the week after a 27% upside charge last week. The Biden administration could decriminalized Marijuana at a federal level, and potentially a move to full legalization.
These are the stocks in breakout mode that meet the strict criteria for Growth Stock Trades.
These top names are leadership and will help determine the success of others on our Bases and Lower Bases lists. Strong representation from biotech, cloud computing, stay at home, work at home, software and online retail.
BREAKOUTS & PULLBACKS
|CDNA||CareDx, Inc.||4X||++||Medical Specialties|
|CGC||Canopy Growth Corporation||3P||+||Agricultural Commodities/Milling|
|CRDF||Cardiff Oncology, Inc.||3X||++||Medical/Nursing Services|
|EXAS||Exact Sciences Corporation||1X||++||Biotechnology|
|FOLD||Amicus Therapeutics, Inc.||4X||++||Biotechnology|
|FRHC||Freedom Holding Corp.||3P||++||Investment Banks/Brokers|
|FSLR||First Solar, Inc.||4P||++||Electronic Components|
|GRWG||GrowGeneration Corp.||1P||++||Wholesale Distributors|
|IIVI||II-VI Incorporated||1X||++||Electronic Equipment/Instruments|
|IR||Ingersoll Rand Inc.||3X||+||Industrial Machinery|
|MDB||MongoDB, Inc. Class A||4X||++||Packaged Software|
|NET||Cloudflare Inc Class A||4X||++||Information Technology Services|
|NOVA||Sunnova Energy International Inc||4X||++||Wholesale Distributors|
|NOW||ServiceNow, Inc.||4P||++||Information Technology Services|
|NTLA||Intellia Therapeutics, Inc.||3X||++||Biotechnology|
|NTRA||Natera, Inc.||4X||++||Medical/Nursing Services|
|OCUL||Ocular Therapeutix Inc||1X||++||Pharmaceuticals: Major|
|PINS||Pinterest, Inc. Class A||4P||++||Internet Software/Services|
|PLUG||Plug Power Inc.||3X||++||Electronic Components|
|RDS.B||Royal Dutch Shell Plc Sponsored ADR Class B||4P||Integrated Oil|
|SNAP||Snap, Inc. Class A||4X||++||Internet Software/Services|
|SQ||Square, Inc. Class A||1P||++||Information Technology Services|
|STNE||StoneCo Ltd. Class A||4P||++||Packaged Software|
|SWAV||Shockwave Medical, Inc.||2X||++||Medical Specialties|
|TER||Teradyne, Inc.||4P||+||Electronic Production Equipment|
|XPEL||XPEL, Inc.||4P||++||Automotive Aftermarket|
|Z||Zillow Group, Inc. Class C||2X||++||Information Technology Services|
Follow GSRTrades for setups of top names.