Seven trading days remain in 2016, so lets make the best of them.
Daily price action, the past week, is beginning to resemble July and August. During the latter period, SPY traded in a narrow range. It’s not until price action began to break down from the August range, that we began to see a trend emerge.
In order for the indices to resume its post election, bullish trend, we need catalysts. We are watching key sectors like financials, healthcare and consumer discretionary, to assist in propelling prices to fresh, all-time highs.
Consumer discretionary should continue higher, with prospective new jobs and associated spending. The thinking is, when consumers are gainfully employed, they will spend. If the Trump economy develops, in the way analysts and economists have predicted, we should see economic growth. Therefore, we should see a rise in this sector.
One “consumer discretionary” stock that many follow is Nike. The company reported earnings that beat by 16.28%. Management guided modestly higher. Current price pre-market is hovering around 52.65 (+/-) sightly lower than the post-EPS call when the stock was up (+2%).
NKE is turning the corner, moving higher from its November lows. If earnings and management direction is any indication, Nike should move higher into the New Year. After all, institutions like buying at a discount.
SKX is currently trading post earnings (10/20/16), consolidating just below the 200ma. Note VFC is parent to the VANS “Off the Wall” brand. These two, VANS and SKX have a better grasp of the younger generations appetite for casual shoes and apparel, in my humble opinion.
The top performing companies, as of yesterdays ranking, are in the list below. KMX broke out yesterday; its worth a look, along with the top 10 in the group listing.
Until an obvious direction develops, we look to the most active list and top performing sectors, to give us an idea what stocks and industry groups are trading each day.
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