Giddy? Maybe, but Definitely Extremely Greedy.
Let's take a look at breadth and sentiment before looking at BMY, PANW, NFE, RCL, SFM, and HUMA.
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The Market
Nice rally into the end of the quarter. Will it last as we enter the new quarter? I can tell you a few things.
Breadth, while positive (and overall, it has been very good), was not great at +200. The NYSE saw net volume slightly negative, too. But Nasdaq, while its breadth was flat as can be, net volume there was a bit over 50%. Basically it looks like an index move late in the day.
There was very little change in the indicators since breadth wasn’t great. For example, the NYSE saw the fewest number of stocks making new highs since September 11th. Nasdaq’s new highs were the fewest since September 12th.
As you know, I have been writing about the contraction in new highs for a while now, since new highs peaked on September 16th (for now). But it takes a while for it to matter in the indicators, so take a look at the Hi-Lo Indicator, which ticked lower today.
Then there is sentiment. As a refresher, I don’t think things are giddy, but I do have a few indicators that tell me I am wrong about that. For example, the CNN Fear and Greed Indicator eked its way into Extreme Greed today.
Then there is the ten-day moving average of the put/call ratio. It is not extreme, in that it hasn’t fallen to the low 80s yet, but it is now in the neighborhood that says there is an awful lot of bullishness out there now.
New Ideas
I feel as though we look at Bristol Myers BMY weekly now, but gosh, that is a base, and if it can ever breakout, it should be good.
Palo Alto Networks PANW is a stock I have liked since April. And once again I like that pullback it has had over the last six weeks. Folks were very excited over it when they reported earnings in August (and then filled that gap that we’d been waiting for) but it had no follow through so no one talks about it anymore. I’d like to see it stay over 330 and then cross over 350.
Today’s Indicator
The 30-day moving average of the advance/decline line is still overbought.
Q&A/Reader’s Feedback
I see nothing in the chart of New Fortress Energy NFE that would make me want to get involved. The stock is obviously in a downtrend and searching for the time or level it might end seems a fruitless effort. It ought to bounce off that line but bounce is the operative word. Even high volume down days haven’t stopped it. I would say wait for a pattern to show up.
Royal Caribbean RCL has an unfulfilled measured target around 195-200 so as long as it holds 170 it ought to make another rally try to get there over time.
Sprouts Farmers Market SFM has a measured target around 115 so as long as it stays over 105 it should make its way there over time.
Humacyte HUMA ought to hold this 4.50-5 aera and rally once we get oversold again. I do think the spike high at 6.50 will be a challenge, though, since it hasn’t made a higher high since August (technically since June).
