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.
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Regular readers will know I like stocks I use. This keeps me patient in bad times, and the past few months with Safeway (NYSE: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 (NYSE: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.