Since we will go up one percent a day every day from now until the end of time I should just leave this section blank.
But I cannot. The funny thing is that breadth, while good enough to make a new high, was worse Wednesday than Tuesday. So, basically, while the non-big cap tech stocks participated, they were not the leaders. Quite frankly, Wednesday's charts felt more like some were up and some were down, and it sure did not feel like the sort of day when the S&P 500 was up 21 and Nasdaq near 90. I guess Apple (AAPL:Nasdaq) had a lot to do with that.
Let me get to what might be relevant, though. We're at the point in the market where "nothing matters," but I feel compelled to share anyway. New highs fell short of Wednesday's readings, which is once again the pattern that we see, where new highs expand for one day, and that's that.
The Nasdaq Momentum Indicator will get overbought after trading on Thursday. I have walked it up 200 points in the next week (I usually do 200 points in two weeks but, hey, why not?). Take a look: No matter what happens, this peaks on Thursday. And it doesn't peak gently.
Along with that, let me note that the DSI for the Volatility Index is now 10. Single digits, and this has gone too far. Nasdaq's DSI is 85. One more up day, and this might get to 90.
I would also note for dollar bulls that the DSI for the Dollar Index is at 89 and the Euro is 9.
I am going to start with my new favorite stock to watch, Cummins (CMI) - Get Free Report, because it has now been up three straight days. It has resistance around that $170 area, but to me this remains a stock to focus on.
Teva (TEVA) - Get Free Report, a stock I have liked for months now, had a big gap up on volume Wednesday. This is a reminder that the base has a first measurement at $14 and the gap gets filled there. I'd look to take some profits. It just reported earnings.
Coupa Software (COUP:Nasdaq) bounced off support, so as long as it stays over that support area, it gets the benefit of the doubt. It's slated to report next month.
The Volume Indicator is stuck at 50%.
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Abbott Labs (ABT) - Get Free Report hasn’t really done anything wrong yet except that it hasn’t made a new high yet. But as long as it stays over this $87 area, this move looks like it’s just a correction.
I am not a huge fan of the gold stocks right here, so when I look at Anglogold (AU) - Get Free Report I can’t decide if it will hold $18 and curl under and this entire sideways move since August will become a base, or if it will break $18 and become a top. Either way $18 is clearly a line in the sand. AU is slated to report earnings later this month.
CrowdStrike (CRWD:Nasdaq) is a chart I have liked for a while and quite frankly it spends a lot of time teasing and not rallying. But if it can ever get going, it would be a nice breakout, wouldn’t it? The company is slated to report late next month.
Hain Celestial (HAIN:Nasdaq) has a measured target of $27.50-$28.50, so it doesn’t have a lot more upside. If it pulled back near $26, I think it would be worth a chance on the buy side.
Navient (NAVI:Nasdaq) has a measured target around $16-$17. What I would like to see is the stock do some sideways work between $14-$15, so that it has some oomph when it is ready to go again. Right here it looks to me like it could peter out right near the highs.
Nutanix (NTNX:Nasdaq), which is slated to report later this month, has an unfulfilled target near that blue line. That would be the next target, especially if it can get through that December high around $37.50. I am fond of this chart.
Nektar Therapeutics (NKTR:Nasdaq) is a funky chart. It had a terrific run to fill the gap, came back more than it should have (should have stopped near $22) and broke the uptrend line and is on the move again. For now I’m inclined to think that spike high in the $27-$28 area is the best it can do since there is a lot of resistance all the way up through the mid-$30s. It's slated to report later this month.