Up And Away

Quick Take: No Bias. Uncertainty remains, though you can’t fight the Fed. 

Never count out American optimism. People want to get back to normal. Rockets and riots aside, this market continues to find buyers. 

The S&P 500 rose 3% for the week and is 11% off its 52-week high. The Nasdaq rose 1.77% and is down less than 4% from its high in February.

Scores of setups from growth stocks with new highs from top earners and issues ready to breakout to new highs. Forecasts from companies benefiting from the changed economy are bright. 

All of this upside has happened with a Sell Bias, which has now turned Neutral.  Uncertainty over the true economic damage as well as the future course of the coronavirus keeps vision cloudy.  

Clearly, the government stimulus is looking like a savior at this juncture. The big question is will the money outlast the coronavirus?

Dow stocks paying good dividends were in favor this week as subtle profit taking from tech stocks took place. 

Surprising economic data with consumer confidence up for April, as were new home sales. Personal savings also rose a record 33%. 

President Trump won’t likely want to risk letting the stock market to flounder in an election year. Though tensions with China, and potential interference with trade remain a major threat to the market. 

LEADERSHIP

FAANG Stocks keep their leadership intact with strong, bullish chart patterns, though none hit new highs for the week. 

New highs are just a shot away with basing patterns from Apple (AAPL), (GOOG) and Microsoft (MSFT)  

TECHNICALLY SPEAKING

  • The S&P 500 regained its 200-SDMA with a solid four closes above the mark for the week. 
  • All sectors were positive for the week.
  • Advancing volume ruled for the second week in a row for the NYSE and Nasdaq.
  • A touch less broad than last week, the rally experience just a little fewer advanced and new highs. 
  • Near 52-week highs and relatively strong since the March lows are Gold (GLD, -0.18%), Healthcare (XLV, +3.40%) and Technology (XLK, +1.53%) Sectors were well bid. 
  • Sectors lagging below major moving average with relative weakness are Real Estate (XLRE, +5.96%) and Industrials (XLI, +6%. s)

GROWTH STOCKS

Novavax (NVAX, -0.15) stays alive with its breakout. Sell-volume has been lighter than buy-volume, giving hope to this stock that’s doubled since we first mentioned it a few weeks ago. 

Many believe we could see multiple coronavirus vaccines ready by the end of the year as more than 100 vaccines are in development.  

Though any success with a vaccine might not mean the end of the coronavirus. Vaccines for the flu only work half the time. 

BREAKOUTS

Biomarin Pharmaceutical IncBMRNPharmaceuticals
Charter Communications IncCHTRMedia & Publishing
Acushnet Holdings CorpGOLFLeisure Products
Cloudflare IncNETSoftware & IT Services
Pool CorpPOOLLeisure Products
Atlassian Corporation PLCTEAMSoftware & IT Services
Williams-Sonoma IncWSMSpecialty Retailers

BASES

A. O. Smith CorpAOSMachinery, Equipment & Components
Avantor IncAVTRHealthcare Equipment & Supplies
TopBuild CorpBLDConstruction & Engineering
Beyond Meat IncBYNDFood & Tobacco
Deckers Outdoor CorpDECKTextiles & Apparel
D.R. Horton IncDHIHomebuilding & Construction Supplies
DaVita IncDVAHealthcare Providers & Services
Epam Systems IncEPAMSoftware & IT Services
GoDaddy IncGDDYSoftware & IT Services
J B Hunt Transport Services IncJBHTFreight & Logistics Services
Manhattan Associates IncMANHSoftware & IT Services
Microsoft CorpMSFTSoftware & IT Services
SiteOne Landscape Supply IncSITEFood & Tobacco
Thor Industries IncTHOLeisure Products
Ubiquiti IncUICommunications & Networking
UnitedHealth Group IncUNHHealthcare Providers & Services

TOP 10 ETF’s As Ranked By New 52-Week Highs

First Trust Cloud Computing ETF (XNAS:SKYY)
Invesco Dynamic Software ETF (ARCX:PSJ)
First Trust NASDAQ Cybersecurity ETF (XNAS:CIBR)
Invesco Dynamic Networking ETF (ARCX:PXQ)
Amplify Online Retail ETF (XNAS:IBUY)
VanEck Vectors Video Gaming and eSports ETF (XNAS:ESPO)
Invesco NASDAQ Internet ETF (XNAS:PNQI)
Global X Social Media ETF (XNAS:SOCL)
Global X Future Analytics Tech ETF (XNAS:AIQ)
SPDR S&P Health Care Equipment ETF (ARCX:XHE)

This weekend’s launch of the combined SpaceX and Nasa rocket marks a turning point in the space industry where the private sector becomes involved. Perhaps as pivotal as when the government handed over the Internet to the private companies. 

SpaceX spent $400 million to develop its Falcon 9 rocket, about a tenth of what it costs Nasa. 

Stay safe,

Dan