This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top Stocks With Helene Meisler

This Market Lift Should Linger

By Helene Meisler | 07/30/15 - 05:58 PM EDT
Stocks in Focus: ESPR, XLE, UPS, UNP, AA

The Market

Today looked like a big churn day to me. The DJIA stalled out at its 200-day moving average. The breadth was essentially flat. And folks rediscovered their love for the haves, but not all of them, just a select few.

I still think we're oversold enough, or at least not yet overbought, that we are likely to stay lifted for about another week. That doesn't mean we have to go up every day -- I'd be shocked if we did -- but dips will likely get bought in this time frame. We saw how quickly this morning's dip got bought. That's what happens in oversold markets.

On a positive note, the American Association of Individual Investors' bears joined the Investors Intelligence bears by climbing to 40%, a reading not seen since the "taper tantrum" of 2013. The chart is shown below. On a shorter-term basis, the Equity put/call ratio was 50% today. Typically a reading under 50% and it screams to get cautious. Yet the 10-day moving average of the put/call ratio has turned down (which is bullish).

The bottom line to me is that I still think we could pull back, but we are not yet overbought, so for now I think we see pullbacks get bought. Once we get overbought, if the problems are still with us, I'd look for us to go back down again.

I do want to point out a few items with regard to Nasdaq. First of all, the Nasdaq Summation Index has barely turned up. That is very unimpressive. Nasdaq is mere points from a new high and its Summation Index has barely turned up. Remember, this indicator tells us what the majority of stocks are doing, so you can see the majority of stocks on Nasdaq are still going down, or at least not playing well on the upside.

Another way to show this is that today Nasdaq tacked on 17 points and net volume (up volume minus declining volume) was a rather poor +100 million shares. That's the poor breadth I speak of.

Finally, several have asked about oil stocks. I was so wrong for liking them in late June and they got crushed for a month. The last few days have lifted them, but in my view that's all I see right now: a lift. Unless the Energy Select Sector SPDR Fund (XLE) can recapture this $72 to $73 area, then this is going to be just another oversold rally. Even getting over the line doesn't turn them positive, it just removes some of the negativity.

New Ideas

I was asked if I could look at Esperion Therapeutics (ESPR) because it's a biotech stock that has gotten creamed of late. That looks like a top to me, but I would point out that it bounced from support today, so as long as it doesn't violate today's low, it has a good chance of getting back into that $70-ish area.

Today's Indicator

The AAII bears are discussed above.

Q&A

Helene welcomes your questions about Top Stocks and her charting strategy and techniques. Please send an email directly to Helene with your questions. However, please remember that TheStreet.com Top Stocks is not intended to provide personalized investment advice. Email Helene here.

We've looked at United Parcel Service (UPS) before with an eye toward an eventual/potential breakout over this $102 area. It has gapped up so much and is now stalled there, so it might need some time to digest, but I continue to think that if it can get over that, the first target is near $106 to $109.

Union Pacific (UNP) would be a better chart if it could spend some time backing and filling between here and $95 so that it can flesh out the other side of the chart. That would set it up for a better move up and over $100. But until then, this is still a stock in a downtrend.

Alcoa (AA) is a chart we've looked at before with a target in the $10.50 to $11 area, but you can see how weak it has been in that it couldn't even bounce from there. The stock ought to start a bottoming process now, but until it gets up and over $10.50 it remains stuck in a downtrend. Over $10.50 would cross that downtrend line and would be the first time it is able to get up and over a previous low. That's what it needs for me to believe it, even though I think it should start that process.

Regards, Helene Meisler

Laggards Are the Leaders Again
Stocks in Focus: IYT, GM, MSFT, AAPL, SLCA

Make no mistake, market is still oversold.

07/29/15 - 06:13 PM EDT
In Today's Rally, the Haves Didn't Have It
Stocks in Focus: CLX, IYT, URI, QRVO, AVGO

And yes, I'd still like a W.

07/28/15 - 06:12 PM EDT

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community

Special Subscription Bundles

Want more than one service?
Sign up to one of our packaged services and take advantage of amazing savings!

Portfolio Plus Real Money Pro
Portfolio
Chairman's Club
Action Alerts PLUS checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Stocks Under $10 checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Growth Seeker checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Dividend Stock
Advisor
checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
TheStreet
Quant Ratings
checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Real Money checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Real Money Pro checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Trifecta Stocks checkmark | Chairman's Club
Action Alerts
OPTIONS
checkmark | Chairman's Club
Options Profits checkmark | Chairman's Club
Daily Swing Trade checkmark | Chairman's Club
Top Stocks checkmark | Chairman's Club
Quarterly Call
with Jim Cramer
checkmark | Chairman's Club
Started Now Started Now Started Now

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%