SPY and the S&P500 continue grinding towards the February peak, with breadth improving as NYMO shows a full-on bullish cycle. Watchlist stocks benefitting from sector rotation, hailing from the industrials and financials sectors also performed.
Summary
SPY Daily
Price action is rising along with the bullish 9/21d moving averages, nearly printing a hanging man yesterday. For all intents and purposes it did close in the upper part of its daily range, near the highs of the day.
MACD remains above its signal line. Volume needs to increase.
NYMO Bullish Cycle – Breadth Improving
The McClellan Oscillator is printing a bullish cycle (black line) since turning the second week of July. Breadth is improving.
Watchlist for the Week
Given the sector rotation we’ve discussed the past couple of weeks, industrials and financials populated the watchlist. The stocks closed higher on Monday, most steering away from the 9/21d moving averages.
| SYMBOL | NAME | CLOSE | CHG | % CHG |
|---|---|---|---|---|
| CAT | CAT – Caterpillar, Inc. | 142.02 | 7.10 | 5.26 |
| RTX | RTX – Raytheon Technologies Corp. | 64.23 | 3.00 | 4.90 |
| NKE | NKE – Nike Inc. | 105.41 | 3.55 | 3.49 |
| WBA | WBA – Walgreens Boots Alliance, Inc. | 42.86 | 1.34 | 3.23 |
| DD | DD – DuPont de Nemours, Inc. | 57.67 | 1.80 | 3.22 |
| AXP | AXP – American Express Co. | 101.62 | 2.46 | 2.48 |
| MMM | MMM – 3M Co. | 161.44 | 3.11 | 1.96 |
| DHI | DHI – DR Horton Inc. | 69.70 | 1.32 | 1.93 |
| IBM | IBM – International Business Machines | 127.11 | 2.15 | 1.72 |
| TRV | TRV – The Travelers Cos., Inc. | 119.12 | 1.76 | 1.50 |
| WMT | WMT – Walmart Inc. | 131.88 | 1.91 | 1.47 |
| JPM | JPM – J.P. Morgan Chase & Co. | 100.64 | 1.26 | 1.27 |
| VZ | VZ – Verizon Communications | 58.99 | 0.46 | 0.79 |
| UNH | UNH – Unitedhealth Group, Inc. | 319.10 | 2.07 | 0.65 |
| GS | GS – Goldman Sachs Group, Inc. | 209.38 | 1.11 | 0.53 |
| AVGO | AVGO – Broadcom Inc. | 327.36 | 1.43 | 0.44 |
| PG | PG – Procter & Gamble Co. | 134.10 | 0.55 | 0.41 |
Futures are higher (+20) this morning, so these stocks should follow through this week. They all showed relative strength on Monday when the markets dipped shortly after 11:15 AM. The industrials and financials remain our primary focus in the interim.
Join us today in the trading room for our LIVESTREAM broadcastduring market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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