While the market’s volatility increases the need for selective stock picking, it also presents some fantastic opportunities to buy stocks whose shares have been discounted through no fault of their own. Our contributors are pouncing on those ideas.
Wall Street’s Best Investments 802
[premium_html_toc post_id="145209"]
Market Views
Caution; Watch for Resistance
Indices have recovered; the S&P 500 encounters potential resistance at 2750.
The IT sector tests recent highs, Consumer Discretionary encounters top of medium-term relative range.
Our outlook remains cautious as indices rally into previous highs.
John Gray, Investors Intelligence, www.investorsintelligence.com, 914-632-0422, February 19, 2018
The Trend is Your Friend
Major averages have made new all-time highs, a common theme of 2017. The advance that is taking place is the best kind of advance, one where pullbacks are very minor and price continues higher as investors wait for the decline. The Nasdaq 100 (QQQ) did break out in January, and could well be on its way to another 7% gain. The trend is up. Apple, its largest component has a very favorable MACD pattern, suggesting there is more room to the upside on top of its recent gains. The trend is your friend. Enjoy the ride.
Dr. Marvin Appel and Gerald Appel, Systems and Forecasts, www.systemsandforecasts.com, 800-829-6229, February 16, 2018
Insider Sentiment Rising
As expected based on historical trends, insider sentiment has improved dramatically since last week—this in response to the severe drop in equity prices. Earnings season is ongoing and many corporate executives and directors remain prohibited from trading, yet sentiment seems likely to improve even further in the coming week.
Indeed, insiders typically become bullish during sell-offs such as the one we have seen since the start of February, and those that are able to trade seem likely to add shares at potentially discounted prices.
Turning to the data, Vickers’ Total One-Week Sell/Buy Ratio currently stands at 2.58, having improved by 245 basis points in the past seven days. The Total Eight-Week Sell/Buy Ratio is essentially flat at 3.78 (compared to 3.77 last week), breaking a string of five consecutive weeks of decline.
Argus Research, Vickers Weekly Insider, www.Vickers-stock.com, February 12, 2018
To read the rest of this month’s issue, download the PDF.
THE NEXT Wall Street’s Best Investments will be published March 21, 2018
Neither Cabot Wealth Network nor our employees are compensated by the companies we recommend. Sources of information are believed to be reliable, but are in no way guaranteed to be complete or without error. Recommendations, opinions or suggestions are given with the understanding that subscribers acting on the information assume all risks. © Cabot Wealth Network. Copying and/or electronic transmission of this report is a violation of U.S. copyright law. For the protection of our subscribers, if copyright laws are violated, the subscription will be terminated. To subscribe or for information on our privacy policy, call 978-745-5532, visit www.cabotwealth.com or write to support@cabotwealth.com.