Star Light Star – oh wait . . .
Last week I, and lots of other internet chatter board members, noticed a potentially strong reversal signal setting up in the markets.
A star pattern can be a strong reversal signal – if (just like with breakouts) there is a strong follow-through.
I bet short sellers were drooling at the thought of a market reversal.
Too bad their wishes didn’t come true.
That follow-through never happened.
So the markets remain in an uptrend, and by the way, in over-bought territory with yet another potentially disappointing earnings season soon to begin.
So of course the markets are going to continue going up. Right?
Janet Yellen and the Fed did everything in their power to support the current rally by reversing their expected hawkish view.
I’m reminded of that famous quote from Forrest Gump.
Fed speak and the market is like opening a box of chocolates, you never know what you are going to get.
I’m not going to try to predict the market. But I will try to follow trends and to keep an eye open for confirmed reversals and buying / selling opportunities.
I have already written about MSFT and others in my previous posts. Another one that I am waiting for confirmation is SWHC. It is currently under pressure by activists and downgrades yet continues to show growth and demand due to politics and policy fears. It showed a good pop last Friday, but as of this morning, no follow-through due to downgrades which are pushing it back down.
If it holds the 50dma then that might be a good buying opportunity.
With watching for opportunities in mind, here is my latest and greatest screen generated watch list for April.
|AYI||Acuity Brands, Inc.|
|MO||Altria Group Inc.|
|AHS||AMN Healthcare Services Inc.|
|AOS||AO Smith Corp.|
|ARW||Arrow Electronics, Inc.|
|AVB||Avalonbay Communities Inc.|
|CDNS||Cadence Design Systems Inc.|
|CVCO||Cavco Industries, Inc.|
|CTXS||Citrix Systems, Inc.|
|CCOI||Cogent Communications Holdings, Inc.|
|COR||CoreSite Realty Corporation|
|CSGS||CSG Systems International Inc.|
|PLAY||Dave & Buster’s Entertainment, Inc.|
|ELS||Equity LifeStyle Properties, Inc.|
|FIVE||Five Below, Inc.|
|FBHS||Fortune Brands Home & Security, Inc.|
|GK||G&K Services Inc.|
|ROCK||Gibraltar Industries, Inc.|
|GILD||Gilead Sciences Inc.|
|GVA||Granite Construction Incorporated|
|INXN||Interxion Holding NV|
|ISRG||Intuitive Surgical, Inc.|
|MKTX||MarketAxess Holdings Inc.|
|MMC||Marsh & McLennan Companies, Inc.|
|MAA||Mid-America Apartment Communities Inc.|
|OFS||OFS Capital Corporation|
|ORLY||O’Reilly Automotive Inc.|
|PNW||Pinnacle West Capital Corporation|
|POWR||PowerSecure International, Inc.|
|PBH||Prestige Brands Holdings, Inc.|
|PRMW||Primo Water Corporation|
|ROIC||Retail Opportunity Investments Corp.|
|RYAAY||Ryanair Holdings plc|
|LUV||Southwest Airlines Co.|
|SKT||Tanger Factory Outlet Centers Inc.|
|SHW||The Sherwin-Williams Company|
|THO||Thor Industries Inc.|
|UFPI||Universal Forest Products Inc.|
|VRSK||Verisk Analytics, Inc.|
|VZ||Verizon Communications Inc.|
|VMC||Vulcan Materials Company|
|WEB||Web.com Group, Inc.|
Until next time,
Be good, Do Well, Have Fun, and stop wishing, start following, and most importantly – wait for that all important follow-through.