Definitive Breakouts

Dow: +155.80…
Nasdaq: +55.38… S&P: +18.30…

The SPX put in a definitive breakout today and if you were one of those folks that were getting all ginned up over Dow 20,000, then you got your wish today.

Dow

Right now a few things can happen, we melt up further as FOMO (fear of missing out) kicks in, or we have seen a “blow off top” and fail from here, or we consolidate a little.

My bet is we melt up or consolidate. The animal spirits appear to be back because too many sectors are just way too strong.

It is a little harder now as some names are stretched, however, I am looking for stocks that may be just starting their moves, so stay tuned.

Even though construction/infrastructure stocks have seen nice moves, it still looks like they have major moves ahead of them. CBI would be a good example of this. Its on the P&L, but if you have a 6-9 month horizon I think you can still be all over this one. As you can see below its breaking out of a wedge on the weekly chart (significant), and its got a lot of air above.

TEX would be another name in this space that has a lot of room to run. I may add this one soon.

I’m showing weekly charts because I want you to see the potential to the upside with some of these stocks. Someone asked me what I liked in the oil patch today and I mentioned ATW and NBL. I also really like FTK as an example of one that may just be starting a big move.

ATW