What Stocks Are Breaking Out
Hey folks. All looks well to me from a broad market glance with major indices holding up with a decent & respectable enough pullback over the last four months. It seems the Dow Jones Industrial ($DJI) had to respect the 23,510 level. We go higher from here...
The Swing Trader
I also like the way the iShares Semiconductor ETF, SOXX is trading and we are waiting for a pullback to to $185 in the ETF for a buy opportunity. But we already told you this would happen back on 08 May in the blog "Semiconductors Are Trading Bullishly", where we foretold the AMD and NVDA rally. NVDA, SOXX and MU going into earnings is still a buy for us. I have to eat my words regarding home builders sector in my 15 May blog "Are You Tracking the Horizon" as they are back to life with a whole lot of volume in the SPDR Homebuild ETF (XHB) recently. I said in the aforementioned blog that the downward movement may be a short term thing so now it seems to be the case. Builders Firstsource (BLDR) is back in the bullish block with a buy.
The Investor
Safe places for new money as we see it are Visa (V), Microsoft (MSFT), for investors and maybe even Micron (MU). Within the Dow I like Johnson & Johnson Inc. The stock is far depressed and has recently showed a pulse, showing higher than normal buy volume. Cheesecake Factory (CAKE) may be a good place to park moving with slow growth expectation and the 2.14% dividend yield certainly does not hurt.
If you have any questions give me a call at 919.740.5610 or email me at rick.streeter@emeraldchasellc.com
