Market participants continue to discount a vaccine-inspired economic recovery for '21, sending the market higher this week amid positive seasonals. For its part, the Nasdaq stands at the top of its recent trading range as it edged into record territory today.
Small- and mid-cap shares are handily outperforming due to their greater sensitivity to domestic economic growth vs. growth from overseas. In fact the Russell 2000 index of small companies derives 80% of its revenue from U.S. operations vs. 40% for the S&P 500.
It should become apparent to those who have used this strategy for a while that the most durable gains come from issues that are the first to return to new-high ground following a short-term reaction or correction.
Along these lines, while our Focus List of actionable issues continues to fill out, the top-quality merchandise has already moved out during this consolidative period for the averages.
Since there will be just three hours of market activity between this report and the end of the week, the next report will be on Wednesday.
Premium subscribers: The Focus List will be updated tomorrow to reflect the next options trade for Friday entry.
The following names are believed to be the most attractive pattern setups in the growth sector. To enlarge the following charts, please click on them. For newer subscribers, the gray arrows indicate previous Focus List buy idea entries.
Bill.com Holdings (BILL)
Crowdstrike Holdings (CRWD)
Paypal Holdings (PYPL)
Renewable Energy Group (REGI)
In sum, the rally continues apace and presents us with additional opportunities.
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All stock charts created using MarketSmith unless otherwise noted. ©2020 MarketSmith, Incorporated. All other charts created using TradeStation. ©2001-2020 TradeStation Technologies. All rights reserved.
The views contained herein represent those of Marder Investment Advisors Corp. At the time of this writing, of the stocks mentioned in this report, Marder Investment Advisors Corp., Kevin Marder, or an affiliate thereof held no positions, though positions are subject to change at any time and without notice. Estimate data provided by FactSet. Expected earnings release dates provided by EarningsWhispers.