Congratulations to Dan Sullivan; the technical expert has just completed his 51st year publishing his advisory service, The Chartist. Here's his latest market outlook and a stock rising in his relative strength rankings.
The market has continued to trend higher led by the small caps that have exploded to the upside. The speculative juices are definitely flowing.
It has been a crazy year. We wish we could tell you exactly how this is all going to play out. Unfortunately, we cannot predict the future. The beauty of the market is that no one else has a crystal ball either. The best we can do is determine the prevailing odds to the best of our ability and act accordingly.
The odds clearly favor the upside. But realize that at some point, this party will end as they always do. And the aftermath is not going to be pleasant. Perhaps we have been around too long and have seen it all before.
We are in the type of market where you can make a great deal of money in a hurry. It is also the same environment where you can lose a great deal of money just as fast.
The bottom line is that our models are positive, and momentum is still very much on the side of the bulls. That's why our real money accounts are fully invested. We have no choice but to have the great bulk of our capital in the market, and we advise you to do the same.
Roku (ROKU) has moved up in our relative strength ratings. The stock has been in a solid uptrend since its March lows at $58.22
The stock has consistently broken through resistance levels and currently trades near its highs, closing today at 289.10. It trades well above its 50- and 200-day moving averages.
Headquartered in San Jose, California, the company is the leading streaming platform based on total hours watched through its devices.
It connects users to streaming content, enables content publishers to build and monetize audiences and provides advertisers with capabilities to engage customers. The company's platform provides access to streaming services such as Netflix, YouTube, Hulu, and Disney+.
Growth has been fueled by customers ditching traditional cable services to personalize their contact and lower costs. Over the past six years, active users have increased from six million to 46 million.
Third-quarter results exceeded expectations. Earnings were 9 cents a share on revenue of $451.7 million compared to the year-ago loss of 22 cents a share on revenue of $260.9 million.
The consensus estimates were for a loss of 40 cents a share on sales of $367.8 million. Average revenue per user rose 20% to $27 versus the same quarter a year ago.
