Market uptrend intact, but vulnerable
Last week’s choppy action in the major market averages – including the noteworthy outperformance of the Nasdaq – so far seems consistent with consolidation in the market’s current short-term uptrend from the recent lows. A break below ~1230 on the S&P 500 and 11,100-11,200 on the DJIA, however, would change this picture to something less positive.
New positions
No new positions were added this week.
Watchlists
The following stocks showed up on this week’s “upside strength” scans, suggesting that they may be headed higher and may represent good buying opportunities on weakness: Johnson & Johnson (JNJ) and Ross Stores (ROST).
The following stocks showed up on this week’s “oversold” scans of beaten-down quality stocks, suggesting that likely further near-term weakness may represent a buying opportunity: Allstate (ALL), American Express (AXP), Avery Dennison (AVY), Chubb Corp. (CB), Consolidated Edison (ED), Encana (ECA), Coca Cola (KO), Precision Drilling (PDS), and Statoil ASA (STO).
