As stocks push higher and higher there are less and less stocks trading at a discount and more pricing in a perfect market.  This tilts the risk to the downside thought the market can continue to push higher.

So what is left to buy here?

We still like Healthcare and Cloud stocks along with a few retailers that should do well into the Christmas season.

Bitcoin attempted to break out, but other than that, not much is going on and we remain bullish in the short term.  As I mentioned yesterday the alt market is finally showing some improvement and is setting up for a leg higher as well.

 

BItcoin Weekly

BTCUSD

Bitcoin closed out the week with a solid inside candle at the upper end of the mother bar.  We could see some another week or so of consolidation but this move has likely defined the next leg higher.

We already added at lower prices, I know many added in the lower 7k area, along with our current swing trade so there is not much to do but let the market play out here.

Taking out the 10k level would go a long way for a push back into the mid to upper 11k’s.  There is also a lot of resistance here where buyers were once active, and we look to see if they become sellers where support becomes resistance.

ETHUSD (Weekly)

ETHUSD

Ethereum printed a double bottom, but the key level to take out and hold is 190.0.  As I mentioned on Monday, this is an improved structure which would lend itself to adding a small position, but not overly aggressive.

A target of 240 would be well within range as a position trade.  Just starting to see lack of additional progress to the downside for several months and though not the greatest structure, it is definitely an improvement.

Same type of pattern with a continuation candle off a double bottom.

SPY

SPY

Normally we look at the future price but as Marc mentioned on the show yesterday there is the start of a pattern known as an “abandoned baby”.  Of course it has still yet fully to form.

By itself it does not carry much weight but if we open under 306.50 it would add some weight to a potential top here.  With the bulk of earnings out of the way, de-escalation in the Trade War, and another positive job reports with two revisions to the upside, the risk is to the downside here.

What can happen?  Generally it is something unexpected that shakes the market up, but we are also coming into an election cycle which is a period of uncertainty and can lead to additional volatility.

Initial support is found at 294, but for us to be more aggressive in adding positions we want to see the market pullback into the low 280’s or lower.  Even with that said, employment and wage growth is strong and that should setup for a record breaking Holiday Season for retailers.

Kohl's

KSS

I still think Kohl’s is undervalued to the market and should have a great holiday season.  It is attempting to push out of the range and the current structure is a setup for a breakout of the range.

I would have no problem adding some Kohl’s here especially if you have no exposure.   Our current average price is around $48.00 and we have 50 shares in our portfolio representing about 5% of our account.

We are just going to sit here, but if you are looking for something to buy and put some capital to work, this is one I like and it pays a 5% dividend while you wait.

Abbvie

ABBV

I like Abbvie as a position trade with a 95.0 target.  It also pays nearly a 5% dividend and has recently broke right out of the resistance area.  On any pullback back near the 80.00 or less we will be looking to add.

Gold

XAUUSD

Gold has been in a nearly 3 month consolidation and is not really making progress one way or the other.  The prevailing trend is still bullish so we want to look for longs, but the market has provided no clear setup yet.

This is a tricky market to trade to begin with, and when it is ranging it compounds the difficulty.  We want to see it take out 1540 where we can look for a continuation or pullback into the broader support area.

As for physical buyers, though I still like Silver here, nothing wrong with adding some Gold and if it pulls back into the mid 1400’s adding some more.  I get a lot of questions on what type of Gold to buy.

I know many are in different countries, but the same holds for buying Gold.  Buying Government minted coins with a value, or historical Gold coins like US Pre-33 Liberties and St Gaudens.  Indian heads are one of my favorite and for around $300 a pop you can almost complete the entire $2.50 collection in AU Grade.

There are numerous coins to collect and why I like collecting bullion coins or historical Gold pieces is you own something that is recognizable.   Anyways a lot of questions on Gold so keep to the coins bullion whether modern or historical.

 

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