With market conditions turning increasingly favorable for the bulls, we’re flush with fresh breakouts and new highs in our Inside Scoop universe.
It’s been a long time since this has been the case.
Seeing individual stocks start to offer bullish setups again is some of the best confirmation we could get for the short-term breadth thrusts that have been stacking up in recent weeks.
If this truly was the bottom, then we will continue to see participation expand and there will be plenty more opportunities in the coming months.
Let’s dive in and talk about some of our favorite names that are actionable at current levels.
Everything has been working lately, as the weight of the evidence continues to stack up in favor of the bottom being in for the current cycle.
The short-term breadth thrusts in late July were among the first signs of it. This week, we’re seeing new highs spread out to longer time frames, such as our 63-day indicators.
The percentage of stocks above their 200-day moving average has rebounded higher after undercutting the critical 15% level. This has marked significant bottoms in the past.
Participation has spread beyond growth stocks over the near term, as materials and energy are also rallying and reclaiming key levels. We can say the same for crypto.
And, most importantly, we’re finally seeing upside resolutions. Not only that, they’re holding.
Some of our favorite charts right now are short-term reversal patterns. We’re seeing them all over in growth stocks.
As this summer’s relief rally gains momentum, the new highs list is gaining and growing along with it.
For long-only universes like The Hot List, this is great news.
Why?
Because we finally have a good amount of bullish chart setups to choose from again. For a few months there, we were struggling to find solid opportunities for putting on long exposure.
We’ve been patiently waiting for evidence that the market is turning. And while we’re not out of the woods yet, conditions have improved significantly since June.
Let’s dive in and talk about some health care stocks that have our attention right now.
It’s been a while since we had two long ideas from The Hot List in a single week.
But with markets in rally mode for the past month, we’ve had some strong stocks pop up on our scan.
While new highs are hard to trust in this tape, any names setting up for breakouts are stocks we want on our radar.
If they're unable to make a decisive upside resolution now, they'll probably be some of the first stocks to do so when the selling pressure finally eases.
We talked about one name we can put in this category earlier in the week, which you can read here. Today, we have another one.