Following an impressive turnaround two weeks ago, the market’s encouraging vibes continued last week. Early April saw a bunch of true, panic-type readings, and after stabilizing on the tariff delay news, we wrote that the market had likely hit a low that it could work off of. I like ServiceTitan Inc. (TTAN) as a trade here, highlights Mike Cintolo, editor at Cabot Top Ten Trader.
The question was how strong any bounce would be. But so far, it’s been very encouraging, with a string of up days from the major indexes and improvement in the broad market (new lows have dried up nicely). The recent Three Day Thrust signal also hints that the market will be nicely higher in the months ahead.
However, there’s still more proving to do. As of Friday, the intermediate-term trend of the major indexes was on the fence. A couple more good days this week could do the trick, but it’s not there yet. Most individual stocks are still in downtrends (65% south of their 50-day lines; there are still very, very few names hitting new highs) and there are a ton of potential leaders set to report earnings in the next week or two.
ServiceTitan Inc. (TTAN)
Data by YCharts
We’ll be watching. But the point here is to hold onto your strong, resilient names, as well as a chunk of cash, all while having your buy list ready should the bulls flex their muscle.
As for TTAN, it dropped into our buy range in recent days, which we think marks a solid entry point. Granted, recent IPOs can be very, very squiggly. But we think a nibble here and a looser stop near the century mark is worth a swing.
Recommended Action: Buy TTAN.
