Last week was a flat-to-negative one for U.S. and global stock markets. The Dow Jones fell 0.22%, the S&P 500 rose 0.16% and the NASDAQ gained 0.81%. The MCSI Emerging Markets Index pulled back 0.95%.
Big gainers in your Bull Market Alert portfolio included Regeneron (REGN), which powered up 5.09%; ProShares Ultra Nasdaq Biotechnology ETF (BIB), which jumped 4.90%; Ambarella Inc. (AMBA), which gained 4.78%; and Integrated Device Technology (IDTI), which climbed 2.94%.
Three of these positions, Integrated Device Technology (IDTI), Regeneron (REGN) and Ambarella Inc. (AMBA), hit new 52-week highs.
The WisdomTree Europe Hedged Equity Fund (HEDJ) moved back above its 50-day moving average and is now a BUY. All positions in your Bull Market Alert portfolio are a BUY except for Halyard Health Inc. (HYH).
This week, with the market at the top end of its trading range and on the cusp of entering the worst month of the year in June, I am recommending that you close your position in the Direxion Daily Small Cap Bull 3x ETF (TNA) for a 4.08% gain. Also sell your related TNA June $84 call options (TNA150619C00084000) to lock in an 20.91% gain.
Also, raise your stop in Integrated Device Technology (IDTI) to $22.30 to lock in at least a 15% gain in the stock.
Although the S&P 500 broke out to the upside last week, there wasn’t a lot of celebration on Wall Street.
That’s because there hasn’t been a lot of oomph behind its move. According to Sentimentrader.com, there have been only four times in the past 15 years that the S&P 500 has traded to a new 52-week high while not moving more than 1%.
And according to Bloomberg, when the S&P closed at a new all-time high on Thursday, only 10% of its component stocks were trading at even a four-week high. And nearly 3% of components were trading at a four-week low. That net of +7% is one of the weakest readings in 25 years. Over the course of the past 10 years, this has signaled weakness going forward, at least over the next couple of months.
So I am going to hold off making a new Bull Market Alert recommendation this holiday-shortened week and will monitor the market closely before proposing a new recommendation in the next four weeks or so.
Portfolio Update
ProShares Ultra Nasdaq Biotechnology ETF (BIB) jumped 4.90% last week, continuing a third week of gains. This exchange-traded fund (ETF) split 2:1 last Wednesday. BIB has been historically a strong gainer, but recently hit a double top at the $90 price level. More often than not, splits have the peculiar result of pushing positions higher after the split occurs. With this position currently approaching $90 for a third time, the recent split may be just the catalyst to push BIB higher still. BIB is a BUY.
Integrated Device Technology (IDTI) gained 2.94%. Like BIB, IDTI closed a third week of gains last week to make a new 52-week high. IDTI continues to bask in the glow of its recent positive earnings report as investors continue their buying spree. Raise your stop to $22.30 to lock in at least a 15% gain in this stock. IDTI is a BUY.
iShares MSCI Hong Kong (EWH) rose 1.28%, closing the week just a few cents under its recent 52-week high. With expectations of further economic policy easing coming to China, a positive ripple effect may spread to other local regions, including Hong Kong. EWH has been significantly outperforming U.S. markets this year, and this trend should persist. EWH remains a BUY.
Regeneron (REGN) powered 5.09% higher last week to hit a new 52-week high. Regeneron is another recommendation in your portfolio marking strong and continued gains on the back of a recent positive earnings report. Several analysts’ firms reiterated their “Buy” ratings last week and increased their price targets, including Brean Capital moving its target on REGN to $525, Argus to $560 and Canaccord Genuity to $600. As CNBC’s “Mad Money” host Jim Cramer said, “This stock is not done rising yet!” REGN is a BUY.
Ambarella Inc. (AMBA) followed up with another strong week and has now gained 4.76% since being added to your portfolio. AMBA also marked a new 52-week high last week. This positive trading action is likely from investors getting into position for AMBA’s upcoming earnings report, to be released on June 2 after markets close. AMBA is a BUY.
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