As US markets re-open after a long weekend, sentiment could not be more different than last week’s open. After 6 straight green closes and strong sessions, the bulls must feel very confident.
But such a change in sentiment often leads to a completely different outcome, and we are sticking to our view this is a very different market to 2017; complacency will be punished, volatility will remain high.
We are therefore expecting the wild two way moves in stocks to continue. Early in the week we will be fine tuning our view and the focus will once again be on leading stocks such as Amazon (AMZN) and Netflix (NFLX) which are likely to push for new all time highs. Other stocks are making recoveries to lower highs and in line with the view we projected near the lows.
Last week we resurrected the Hot Stocks section with a new stock each day. The Tesla (TSLA) view from Monday AM projected $350 which was nearly reached at Friday’s $343 highs. We also covered General Electric (GE), Allergan (AGN), Barrick Gold (ABX), and updated a six month old fractal on Snapchat (SNAP) which continues to work (and surprise).
We are seeking large swing trades within what should be broad volatile stock ranges and, until then, time some intraday moves, notably in AAPL.
Chief Stocks Analyst