Market bottom scenario still intact
After a week of backing and filling, it still appears likely that the market rally that began on 9/18 marked the beginning of a new uptrend that has further to go. A break below key near-term support levels – 10,700-10,800 (DJIA) and 1170-1180 (S&P 500) – would imply a less positive (but not necessarily clearly negative) picture at this time.
New positions
No new positions were added this week.
Watchlists
The following stocks showed up on this week’s “upside strength” scans of stocks of interest, suggesting that they may be headed higher and may represent good buying opportunities on weakness: Foot Locker (FL), Hershey (HSY), and Royal Bank of Canada (RY).
The following stocks showed up on this week’s “oversold” scans of beaten-down stocks of interest, suggesting that likely further near-term weakness may represent a buying opportunity: Air Products & Chemicals (APD), AMB Property (AMB), Eaton Corp. (ETN), Magellan Midstream Partners LP (MMP), Pen West Energy Trust (PWE), and Praxair (PX).
