The “Game-Plan” for the week includes many winning stock picks that were exhibiting relative strength last week. We should see follow through moves, as discussed in the members weekend video newsletter. In addition, I failed to cover the Dow Jones Composite. I’ve included my thoughts herein, as this index is bullish for equities.
DOW JONES COMPOSITE “Dow-Theory”
This index is uniquely calibrated to reflect what Charles Dow saw as the heart of the economy. The industrials, utilities and transports all work together. This index has 65 stocks from these groups, further identifying bullish and bearish tendencies in the equity market. When it is rising and above resistance, we should think bullish. Whenthe index loses support, we should think bearish.
Considering the strength in DJA, we should consider industrials, transports and utility stocks this week. Industrials and utilities populated the most active lists last week, so we anticipate we may see more of this activity. Futures are higher in pre-market trading.
Healthcare is Bullish – Additions to the Watch List
MDXG is positioning itself for more upside, as RSI continues to rise. Volume is increasing similar to the last bullish move. Look for a breakout, then add if you started your position with us recently. If you’re taking a new position use the TD Setup for entry timing. Either way, keep an eye on XLV as it trends higher. EPS Date: 7/26/2017.
HIIQ popped up on a High Tight Flag this weekend. The company does not report until August, so there is plenty of time to trade this one if the TTM squeeze fires today or tomorrow. The company is ranked #4 in its industry group. Oscillators confirm a bullish scenario.
The watch list stocks should be viewed similarly. Use the Trade of the Day setup for entry and exit. Additionally, be mindful of the Top Down Approach as outlined in Traders Tip #12 recorded this weekend. I’ll upload it to the Video Library today.
Good luck this week.
Vinny