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 (NASDAQ: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 (NASDAQ: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.