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BEFORE THE OPEN 12/13/19
Massive breakouts on Thursday again, across the board in global markets. S&P 500 closed at a new all-time high, +.86% at 3168. Nasdaq closed at a new all-time high as well, +.73% at 8717. Follow through in Asia and Europe this morning, with the Nikkei + 2.55% at 24, 023, a new 52-week high, Hong Kong Hang Seng index +2.57% at 27,687, and Germany DAX +1.20%, at 13,380, a new 52-week high. S&P Futures, ES, are currently +.53%.
416 new highs on the NYSE and 203 on the Nasdaq on Thursday. New highs in the following core stocks and industry groups that I track, ranked by volume:
ETFs
SPY, XLF, EFA, IWM, XLK, XLV, SMH, and EZU
NYSE
BAC, BABA, BMY, C, TSM. JPM, MS, MRK, NKE, DHI, STM, MAS, UNH, and GS
NASDAQ
AMD, AAPL, MSFT, NVDA
NYSE New Highs (ranked by volume)
NYSE New Highs (continued)
Cyclicals and value stocks were up considerably, as we have been expecting, and are sending a bullish economic signal. In my focus large-cap universe, semis, industrial metals, energy and financials topped the list. These are all traditional cyclical sectors, as their business performance is tied to the economic cycle. Core names up over 3% included AMD*, TSM, MT*, GE*, HAL*, MU, SCGLY, MPC, HL*, NVDA*, and BAC* (asterisk names represent current open positions).
UPDATED OPEN POSITIONS
CHART OF THE DAY 12/13/19
BANK OF AMERICA (BAC)
Bank of America made a new 11-year high Thursday with a strong breakout over $34. BAC and JP Morgan, JPM, are my two focus financial/money center bank names. These names continue to be buyable for my time frame.
Charts of interest below, in some of our open positions and from our Best Trade Ideas list:
Advanced Micro Devices (AMD)
New 52-week+ high.
Semis ETF (SMH)
New all-time high.
Nasdaq 100 ETF (QQQ)
New all-time high.
Nvidia (NVDA)
New 52-week high.
Masco (MAS)
New 52-week high.
Halliburton (HAL)
Recent new buy and Chart of the Day idea, pulling away from the 200-day moving average.
ArcelorMittal (MT)
Recent new buy and Chart of the Day idea, pulling away from the 200-day moving average, and a new 7-month high.
Core industry groups and focus stocks and ETF’s of interest for intermediate to longer-term positions:
Technology, AAPL, BABA, FB, GOOGL, JD, MSFT, MA, SHOP, V, XLK, QQQ
Semiconductors, AMD, AMAT, INTC, MU, NVDA, SMH
Financials, BAC, JPM, C, GS, MS
Healthcare, ABBV, ABT, AMGN, BMY, JNJ, MRK, UNH
Energy, CVX, COP, HAL, MPC, SLB, VLO, XOP
Industrials GE, CAT, DE, HON, J, MAS, OC, PCAR, UTX, ITB, XLI
Industrial Metals, AA, AKS, FCX, MT, X, XME
Europe Financials BCS, CS, DB, RBS, SCGLY, UBS
Consumer Related AMZN, DIS, KHC, NKE, SBUX, TGT, WMT
SUMMARY
This is very strong price action, and I continue to maintain my technically bullish stance, with a focus on technology, semiconductors, financials, healthcare, energy, industrials, industrial metals, Europe financials and consumer names. As has been the case for the last few months, I am neutral on Treasuries, interest rate sensitive industries, and Gold, with no open positions in those groups.
Markets can reverse at any time, but for now, the price action and charts are technically constructive, and as long as key price levels, SPX over 2925, and the 200-day moving average holds, I am still positioned technically bullish and fully long.
Have a great day weekend.
