SEVERAL STOCKS TO WATCH AMIDST THE CURRENT MARKET TURMOIL

September 21, 2021

The HCM-BuyLine® is still positive, and the selloff this week was much needed. I know that sounds bizarre, but markets have to reset from time to time, and periods of consolidation are needed. The market would have to have a lot more selling to turn the HCM-BuyLine® negative at this level, so pullbacks are buyable. I do suspect we will see some additional selling pressure over the near-term. The market has been steadily marching higher since late November, so this week’s price action should not surprise anyone. The S&P 500 has pulled back to its 100-day MA which has been a strong area of support over past 2 years (see chart below). 

SPX-S&P-500-Large-Cap-Index-INDX

Paycom Software (PAYC) held up very well this week despite Monday's selloff. It continues to stabilize and move higher as the payroll/HR management software continues its upward push. 

PAYC-Paycom-Software-Inc

Lululemon (LULU) also held up strong on a bad day, and the breakout it posted a week back looks like it will hold. With strong earnings growth and strong sales, continue adding to this position as the stock moves higher. 

LULU-Lululemon-Athletica-Inc

The Semiconductor ETF, SOXX, still looks good, and a modest pull back should be considered buyable. 

SOXX-iShares-PHLX-Semiconductor-ETF

Intel Corp (INTC) closed below its 50-day MA, but is still holding up well. The stock did not drop below the prior low, which could indicate it is finding a base to move higher. 

IBB-iShares-Nasdaq-Biotechnology-ETF

Finally, the airline stocks ETF JETS is holding up well. Most of our buys do not occur when a stock or ETF is low, but the math is indicating a turning point in this sector. From our original entry point we have not given back much at all, and still see this as a good play going into the last half of the year. As Covid rolls over, which it appears to be doing (and let’s hope it does), JETS should be a beneficiary of any positive news surrounding the virus. 

JETS-US-Global-Jets-ETF-AMEX-BATS




Wealth Watch

Sign up for our weekly news to hear from CEO and portfolio manager, Vance Howard.