Today was sort-of textbook. It popped at the open, pressed against overhead resistance all day long, then sold off toward the end of the day… but, closed a bit up, for the most part. If, when I check on the volume, it was high… that would qualify as a very typical kind of distribution day, when institutions were selling into strength and trying to mask their efforts. I don’t try to call the tops and turn-down points. I’ve never been able to get those right. I’ve always been good at marking the low-risk market entry points to be a buyer. I’ve never learned of any truly good top-caller either. It’s just so much harder to do. But, with valuations a bit high, technicals stretched well into overbought territory, and the volume being light to the upside… O, and I also saw that participation was narrow, unlike the February leg upward… it would all spell top, and a downturn from here… but, I’m just not that kind of a betting man.
As nearly every day recently, the very same 22 issues come to me as I conduct my research, looking for the very best of the safe-dividend growers. They are: NKE, HRL, JKHY, ROST, TJX, HD, EFX, SBUX, NOC, STZ, TSCO, EL, AOS, UNH, FDS, LOW, SYK, RAI, LMT, COST, CVS and NDAQ, again.
There’s a great deal of price strength in the following 11 stocks: JKHY, EFX, NOC, TSCO, AOS, UNH, LOW, SYK, RAI, LMT and COST.
Market risk measures… pretty high! We’ll get a decline to set in at some time, and we’ll measure the decline in risk, until it appears to have been wrung out, and then we will be a buyer again.
I did check on the volume, and it was not extraordinary, so yesterday would not be called a distribution day. Our futures are up just a bit overseas, too. So, perhaps the market will fail here at resistance, or it might break through, and attain unto all new highs… your guess which! My guess, based on all I know, is that it will do the opposite of what I guess!
Here’s to your successful investing!
Harold F Crowell