Several Stocks to Watch Amidst the Current Market Turmoil
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).

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.

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.

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

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.

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.
