Amid Shifting Market, I'm Eyeing These Three Stocks
Also, here's my favorite chart as we face a dearth of good technical setups.
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The market started slowly on Thursday morning but spiked higher on a much stronger than-anticipated ISM Services number. Although this appears to indicate that strong inflationary pressures remain, the market reacted favorably to the news because it supports the soft economic landing thesis.
The problem is that data like this allows the Fed to be less aggressive with rate cuts, which is what the market really wants. We’ll see how things develop as this action is digested, but the news about the September jobs on Friday morning will be much more important.
The action in individual stocks is very muted so far. Breadth is poor at around 2-to-1 negative, and my scans of big movers are only identifying nine stocks that are up more than 10%. Strength in Nvidia NVDA is offsetting broad weakness elsewhere.
I’ve been lugging around a high level of cash for a while, and I am not doing anything very aggressive right now. I added to a position in Viking Therapeutics VKTX, which is acting better in anticipation of Obesity Week in about a month.
I also like the technical action in the data center/bitcoin miners. I added a little TeraWulf WULF, which is holding at its 50-day simple moving average.
My favorite chart in the market right now, however, is Core Scientific CORZ. I’ve highlighted this several times, and it continues to perform very well. I like the story, and the chart confirms it. I added some shares this morning and am looking for a near-term test of the $13 level.
This is a market that is in transition, and we will have to wait for better technical action to develop it. There are a few things of interest, but this is a market that favors incremental buying.
At the time of publication, DePorre was long NVDA, VKTX, WULF, CORZ.
