Back to back accumulation days on the S&P 500 gives the Bull some momentum going into February. It’s mostly been energy stocks bouncing off lows, so we won’t get too excited. Yet a broader bounce is still very much in play.
Bias stays with the Seller at this juncture.
Only TAL Education Corp. (XRS) meets our strict screen for top quality stocks.
However, we are seeing some other decent names setup:
Store Capital Corp. (STOR), a commercial REIT, has shot up an easy 10% since mentioned here last weekend.
Ollie’s Bargain Outlet (OLLI), a discount retailer, also holds great potential as it carves the right side of a base.
Same goes for Empire District Electric (EDE), an electric utility.
Encouraging breakouts from: SERV, DLR.
Success from the above ups the odds for the attractive technical bases from ISRG, WEC and ITC.