A tamer-than-expected inflation report cemented the idea that the Federal Reserve is on hold, and that sent the major indices higher. The rally that started Nov. 1 had been promising, and now it looks some of the flies in the ointment that remained are clearing up. Buy Nutanix (NTNX), writes Mike Cintolo, editor of Cabot Top Ten Trader.
The recent market action is very broad and bullish, with our Cabot Tides flipping to positive and with more stocks acting well and hitting new highs. Short term, it’s possible (even likely) we see some retrenchment after a straight-up move in some stocks. But the slippage in interest rates is just about close enough to turn the intermediate-term trend down.
Loading up on a ton of names here probably isn’t ideal. Moreover, let’s not forget that, big picture, the market has turned up for “just” two weeks, so things are still trying to build up a head of steam.
Nutanix (NTNX)
Still, we always go with the evidence, and there’s no doubt that the market is acting well off what we thought was a good setup, with more stocks and some indicators turning up. That’s why I recommend doing a little more buying and looking to continue on that path (ideally after a bit of exhaling in leaders) if things remain on track.
I recommend filling out a position in Nutanix. It is a leading cloud software provider that offers unified storage, database, and desktop services to support applications and workloads.
Recommended Action: Buy NTNX.
