Smart traders will continue to look for a spot to buy this week.
This means you should be in stocks that have cleared recent highs and shouldn’t bother with shares struggling to show institutional buying. Fridays price action of a lower open with a powerful rally proves once again you should be patient for a spot to buy.
What if the breakout fails?
With the market breaking out to new highs again there is little reason to be anything but long. If your trades fail to follow through be a pro and take your loss. Trying to pick a top hasn’t worked for 18 months.
Here are the sectors and industries that should be in play this week:
HSP, ENDP, BSX, CELG, UNH, CVS, AET, ABT MDT
LULU, COH, GM>$38, MO, AAPL, LO
LOW, NFLX>$480, KR, KSS, AMZN, SBUX, WFM
TASR, BA, UTX, TOL, DHI, HON, MMM> $169
You always want to be prepared. Don’t fall into the losing trap of shorting strong stocks if the breakout fails.
Look to be short relative weakness if the market rolls over and you have the desire to be a short-seller.
Basic Materials fits the bill here.
HAL, NUE, NOV, APA