Morning Market ThoughtsGood morning. I’ve had some internet connectivity issues this morning so I’m getting this out a bit late.
The market has opened higher this morning and the FAANNG stocks are all up a bit. There is still an underlying bid for the leaders. Many traders may be nervous, but few seem eager to sell. A few days ago, it was starting to look like the market was in trouble because of the steep decline in the Nasdaq. That has been disproved by the current market moves, including new highs by the transports and small caps, and the S&P close behind.
STOCKS TO WATCH
Last night I analyzed a few stocks that were breaking out of squeezes. You might check YY, Inc (YY), which broke out yesterday is giving back some of its gains, but is still above $80, which is a critical level. Also, Rollins (ROL)_ and Garmin (GRMN) are working. Nutrisystem (NTRI) seems to have its belly fat under control and is lifting back above the 50-day moving average and seems to be at the tail end of a two month consolidation.
Also, Equifax (EFX) continues to rebound from a deeply oversold level. The stock is pretty extended and I think this move is close to being done. The stock opened around $125 after the data breach was reported and traded clear down to $90. Do a Fibonacci retracement analysis and you’ll see that the stock is right at 50%. There’s no indication that this marks the end of the move…but it is a factor in exit strategy. At this point, the stock doesn’t get much room before exiting.
I’m heading over to the trading room and hope to see you there.