Talk about a pause -- as I’m writing this the net movement in the S&P 500 for the past week is 0.01%. That’s pretty much the definition of sideways movement, but certainly in line with what you’d expect after the recent run-up.
However, the market has not sold off and everyday it keeps close to resistance increases the odds of a forthcoming breakout.
Regular readers will know I like stocks I use. This keeps me patient in bad times, and the past few months with Safeway (SWY) have certainly not been pretty. However, it ramped on takeover news and bailed me out of a losing trade. I don’t see it going much higher, though, so if you also held it, I’d sell.
Along the lines of “buy what you use,” WGL Holdings (WGL) is my gas utility and has been in my portfolio for a while. Certainly looks like things have brightened for the stock.
Back next week to see if my forecast of and upside breakout is more than wishful thinking.
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."