George Tkaczuk on How to Play the Recent Uptrend

From the floor of the CME Group in Chicago, George Tkaczuk, Senior Portfolio Manager at RCM Wealth, discusses the recent uptrend and complacency in stocks. The NASDAQ is at a new 14-year closing high, despite its lagging the S&P for much of the early part of the year. S&P, Dow Industrials, Dow Transports, and NYSE Composite Index all flirting with new highs, signaling he continuation of the uptrend. Peripheral indicators that worry Tkaczuk: the VIX is hitting multi-year lows, a sign of a complacency about stocks which makes many investors worry; CBOE put-to-call ratio fairly low, another sign of complacency. These factors suggest we may experience a correction, although the uptrend will probably continue as long as techs/biotechs continue to soar. Specifically, PANW recently broke out, and Tkaczuk says there’s room for the shares (currently trading at $78-$80) to run up to and beyond their $82 resistance. On the downside, he is wary of the stock breaking down below the $76 support. In addition, a number of firms are accumulating shares, indicating bullishness.