The markets keep sailing along, although at a slower pace. The Dow Jones Industrial Average gained about 400 points since the last issue. The economy remains strong, with both new home and pending house sales rising. Unemployment continues to decline. Overall, a nice, sound economy.
And as you’ll see in our Market Views section, our contributors continue to be bullish.
After a fantastic showing for our 2019 Top Picks last month, our contributors are continuing to find some great stocks with big potential for you.
Wall Street’s Best Dividend Stocks 323
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Market Views
Be Ready for Profit-Taking
The S&P 500 and Dow Jones Industrial Average were little changed today on slightly negative breadth on the NYSE. Broad foreign equity ETFs (EFA, EEM, VEU) also had a quiet day. However, small and mid-cap ETFs fell about 1?2%.
The iShares Russell 2000 Index ETF remains in the sideways, low-volatility trend that I mentioned on the last hotline. The Nasdaq 100
Index ETF (QQQ), in contrast, is in an uptrend, having made its most recent high on Friday. It looks to have formed a negative divergence with its MACD (see chart below). We haven’t gotten an MACD sell yet (MACD remains above its signal line) but when we do, this could be an opportunity to take some profits.
Dr. Marvin Appel and Gerald Appel, Systems and Forecasts, www.systemsandforecasts.com, 800-829-6229, July 29, 2019
Still Bullish
Equity-only put-call ratio charts are still on buy signals. Even though they have curled higher over the past few days and seem to the naked eye to have the potential to move higher and thus generate sell signals, the computer analysis programs that we employ are still ranking them as “buy” at this time.
Market breadth has arguably been the weakest area, at least as far the breadth oscillators are concerned. The breadth oscillators have been flipping back and forth between buy and sell signals for several days.
Volatility has remained at low levels (too low?), and that is bullish for stocks as long as it persists. That is, while $VIX remains trendless at low levels on its chart, the stock market can continue to rise.
In summary, most of our indicators remain on buy signals, especially the important charts of $SPX and $VIX. As long as $SPX remains above support at 2950, we will remain bullish.
Lawrence G. McMillan, The Option Strategist, www.optionstrategist.com, 973-328-1303, July 26, 2019
Ditto
The S&P 500 confirms break below 2800, next support 2700; the Nasdaq 100 forms top beneath 7500, with support at 7000. The Short Term Composite reaches an extreme reading of 1.7. Transports form short term top. Our outlook is still cautious but we note the Short Term Composite becoming very oversold.
John Gray, Investors Intelligence, www.investorsintelligence.com, 914-632-0422, June 3, 2019
To read the rest of this month’s issue, download the PDF.
The next Wall Street’s Best Dividend Stocks issue will be published on September 11, 2019
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