This morning I was using MarketClub's Smart Scan and noticed something that perfectly reflects the current market conditions we are experiencing right now. The number of chart Scores of +100 and -100 indicating strong upside and downside trends were practically even. This illustrates the lack a unified consensus either way for a strong bull or a bear market.
Eventually this balance will change one way or the other, but for now caution is not a bad word to use or practice in this market.
The Haves And The Have-Nots
No, I'm not talking about politics or political correctness, I'm talking about stocks that have everything going for them and other wannabe stocks that for whatever reason do not have that same mojo.
Here are 5 stocks that everything going for them:
Amazon.com Inc. (NASDAQ:AMZN)
Starbucks Corp. (NASDAQ:SBUX)
Facebook Inc. (NASDAQ:FB)
Visa Inc. (NYSE:V)
Adobe Systems Inc. (NASDAQ:ADBE)
Here are 5 wannabe stocks that have everything going against them:
Pandora Media Inc. (NYSE:P)
Foot Locker Inc. (NYSE:FL)
Skechers U.S.A. Inc. (NYSE:SKX)
SUPERVALU Inc. (NYSE:SVU)
Qlik Technologies Inc. (NASDAQ:QLIK)
Each of these groups have something in common, they all are exhibiting unified Trade Triangles in one direction. The first group of stocks all have positive Trade Triangles indicating that the major trend is on the upside. The second group is just the reverse of the first group and are all showing Trade Triangles in a negative mode. The other commonality is that both sets of stocks trade over 2 million plus shares a day. This is an important point as you mainly want to trade in liquid markets.
The point of today's blog post is to remind you that you need to stay disciplined, focused and have a game plan for every stock you trade. It also helps (and this is a hard one!) to stay neutral and emotionless as much as humanly possible about the market.
So what's the ultimate answer to any market conundrum?
The final and the correct answer is that the market always gets it right in the end. Listen to what the market is saying and you will be successful in all of your investment goals.
Today I will be taking a quick run through the major markets and take a look at what happened to gold yesterday.
Stay focused and disciplined.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
