SPDR S&P 500 ETF
Before we get into any new names, though, I want to revisit a recommendation from last week that's still very relevant from anyone who has skin in the game right now. I'm talking about the SPDR S&P 500 ETF (SPY), a fund that essentially mirrors the S&P 500 index. Last week, I said that "with the S&P bouncing, it looks like a good time to 'buy' the broad market" by picking up units of SPY.
That turned out to be a good move -- the ETF has rallied 6.78% in those last five trading days.
Now, though, investors and traders alike are wondering how much longer the rally can last. With the S&P breaking hard above its past 1,345 resistance level, I think that the index stands a solid shot at taking out previous highs in July. To do that, we'll want to see the index settle a bit -- it's looking pretty overbought now. Some sideways consolidation would do the trick without forfeiting any recent gains.As long as the S&P can hold its head above its 200-day moving average, I'd be a net buyer of stocks. Related: 10 Best-Performing S&P 500 Stocks of 2011