The bulls are pushing higher highs again today and there are a few sectors showing strength that could help extend the current rally into December. We have talked about the Financial stocks showing some life over the past week and this week Homebuilding stocks have been on the move.
The sector has been in a downtrend since July and we mentioned inside our Members Area not too many of the talking heads noticed the possible breakout underway. One stock on our Watch List closed above its 200-day MA for the first time since mid-July and a run past $20 could be coming. We talked about the “Golden Cross” that has formed as the 50-day Moving Average (MA) has crossed the 100-day MA and this is usually a bullish sign.
Economic news has come in better-than-expected today and is also providing some of the bullish bias ahead of the holiday. Chicago ISM came in at 63 for November and although it was slightly below the October surge to 65.9 (up from 55.7 in September), it beat expectations.
The Michigan Sentiment report soared to a 75.1 for November, up from 73.2 in October. The was a surprise as the report debunked fears from the zombie shutdown and possible healthcare policy cancellations. In fact, the report suggests consumers will spend more this year for Christmas, another bullish sign.
The market is closed on Thursday and is open a half day on Black Friday. We will be at the office doing our normal gig as we would rather chat with our subscribers instead of fighting the holiday crowds. Besides, we have money in the market and we work when Wall Street is open.
As we head into the second half of trading, the Dow is down 2 points to 16,070 while the S&P 500 is higher by a point to 1,803. The Nasdaq is advancing 14 points to 4,031.
We have some updates on our current trades and we have also decided to add another New Trade to the portfolio so let’s get on it.
We will be back Friday morning with our next update and we will be watching the market into the close. We doubt we will have to take action but if we do take profits or close a position ahead of the bell, we will send out a Profit Alert. Otherwise, be safe and enjoy Thanksgiving!