The S&P 500 (SPX) did not consolidate long under 4,200 and has closed above for two straight sessions, says Steve Reitmeister, editor of Reitmeister Total Return.
However, I sense the battle over 4,200 is not yet done. Meaning that this week we could spend some time under.
No. This is not a call for taking profits or any sort of market timing moves. Still a long-term bear market and any consolidation, pullbacks, or corrections will likely prove to be shallow and short lived. So best to stay leaning into a bullish posture for whenever the market is ready to charge ahead.
The most important thing to update is that our “wait and see” approach on Kulicke and Soffa Industries Inc. (KLIC) is paying off with a RTR leading +4.7% gain today. And really since the darkest hours of trading last week, the stock is up more than 10%.
Analysts are singing their praises with ample estimate increases and target price raises. Speaking of which the average target is now $74.33, which is nearly 50% above current levels. I suspect that we were wise to not run away in a panic. And that this patience will pay off handsomely in the end.
All in all 12 of 14 positions were in positive territory leading to a solid outperformance for our portfolio. j2 Global Inc. (JCOM) was a standout with a +3.6% session. This seems appropriate coming into their Monday evening earnings report given the recent history of impressive beat and raises. It would not shock me with shares cracking $130 and rounding the corner to $140 in the week or two following the announcement.
General Motors Company (GM) continues to rev up more after their impressive earnings report. Hopefully read to speed up over $60.
Insperity Inc. (NSP) shares are showing a bit more backbone after their impressive earnings.
Brunswick Corporation (BC) continues to make waves after their strong earnings announcement and likely closing in on $120 in the not too distant future.
All in all, we are well positioned for the brand of investing that is in fashion this year. The timing of when the overall market moves higher...or each of our stocks has their shining moment is unknown and unknowable in advance. Yet with the POWR Ratings at our backs, the odds of future outperformance is decidedly in our favor.
Learn more about Steve Reitmeister at StockNews.com.