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Issue 792

Our contributors found ideas with great potential in just about every sector this month, and our Spotlight Stock is a company that has taken the lead in women’s healthcare, particularly in the diagnostic, surgical and medical-imaging products sectors.

Wall Street’s Best Investments 792

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Market Views

Natural-Positive Outlook

The S&P 500 SPDR has remained within the narrow range of 233.70 to 236.60 over the past three weeks. Confirming the quietude is the MACD, which has been scraping the zero line for the past two weeks. The chart does not by itself provide much guidance as to which way stocks will break out. However, with our models still neutral-positive, upside potential remains greater than downside risk even if both appear modest in the near term.

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Support for SPY should like around 232.70 (lower Bollinger band) to 233.60, while resistance is close at hand at the middle Bollinger band. The next resistance above that is at the upper Bollinger band, around 238.75, which would represent a retest of the March 1 highs.

The Nasdaq Composite remains ahead of the S&P 500 Index, a condition which has characterized better overall market climates. Large-caps continue their four-month old trend of outperforming small-caps. Growth remains ahead of value among both large and small-cap ETFs.
Dr. Marvin Appel and Gerald Appel, Systems and Forecasts, www.systemsandforecasts.com, 800-829-6229, April 10, 2017


Still Going Strong

The NYSE advance-decline line made a new high on Friday March 31. Strong stock-market internal indicators like that simply do not suggest that a negative outlook for the market is appropriate at this time. In the face of such internal strength, our outlook has to be positive, which means that we are looking to buy weakness. It is not that the possibility of a negative outcome is forgone, it is just that the odds are against a serious decline at present and we play the odds. Confirming the strength in the a-d line is an absence of new 52-week lows during the recent consolidation.
John Bollinger, The Bollinger Band Letter, www.bollingerbands.com, 310-798-8855, April 8, 2017


Some Signs of the Bear
Even with all the political drama, the CBOE Volatility Index (VIX) has remained rather muted—though VIX options traders have not. At the same time, other signs suggest bearish sentiment is on the rise, including a recent uptick in short interest and some notable hedging from SPDR S&P 500 ETF (SPY) options traders.
Bernie Schaeffer, Schaeffer’s Investment Research, www.SchaeffersResearch.com, 800-327-8833, April 7, 2017


To read the rest of this month’s issue, download the PDF.


THE NEXT Wall Street’s Best Investments WILL BE PUBLISHED May 17, 2017
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