It’s funny -- the economy seems in a funk, yet the market continues to climb. Is it sending a signal that things are about to get better?
Beats me, but as long as the trend is up, it’s best to be on the long side. Certainly the S&P looks like it has legs, and I’d expect another move up shortly.
This week, I wanted to focus on “hot stocks” and I’m not sure there’s been any hotter than Tesla (TSLA). Or, at least it was hot. It’s cooled a bit, so I wouldn’t consider buying more unless it breaks the current downtrend.
Netflix (NFLX) has also burned down the barn, although that same day gap up/sell off was a strange move. As I recall, it came about from the CEO putting cold water on the rise, but regardless it’s a warning sign the uptrend may be faltering.
Back next week to see if the breakout I’m looking for actually happened.
Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."