Indexes Tack On Another Strong Week To Highs; DoorDash, Toast, Vistra In Focus

15:17Alissa Coram:And it wasn't alone. I mean, you had Schwab that was also looking fairly strong today. And you've got a whole host of other like LPLA and others that will be reporting soon. So certainly an area to watch.

15:31Justin Nielsen:Yes. All right. Here's the materials, XLB. One area as well that we like looking underneath the surface to see if we can find some of that leadership. But overall, as a broad sector, it doesn't seem like it's one that we are overweight in at this particular juncture. Let's go to XLRE, real estate essentially keeping pace with the S &P 500 over the last couple of weeks. But since the lows in April, really underperforming, not all too surprising. And then XLY, you have your Tesla and your Amazon in here. Tesla, one of the other big earnings reports coming up next week.

16:14Alissa Coram:And look, this is another one. Let's take a look at the equal weight. That's RSPD. Consumer discretionary is pretty strong. So in some ways, Tesla has been a little bit of a drag on the discretionary. And, you know, even Amazon, you know, was showing a little bit of potential weakness a couple weeks ago, but that's been trending above its 21 day moving average line very nicely. But, you know, as RSPD shows, there's a lot of consumer discretionary that's looking good. And you could also take a look at XRT, which is the retail. That one doesn't look too bad either.

16:52Justin Nielsen:Yeah. And we're almost done here. Last one, the utilities. And we already looked at the UTS ETF, which was even stronger on the day, but you even have your broader utility sector, spider ETF XLU up a solid 1.7 % on the day. So this continues to be a very compelling area when you're talking about utility as AI plays.

17:20Alissa Coram:Yeah, absolutely. And just a few others to kind of add to the mix here, because you asked for some other ETFs that were looking interesting. Got to give props to Kathy Woods. I mean, she's been having a lot of success with her ARK Innovation Fund. So not only with ARK-K, but you also have ARK-Q that had a very, very strong week this week. That's in the autonomous technology. You had ARK-F, which is the fintech. Of course, you got your hoods, your circles. I do have a position in both of those. Those are in that ARK-F as well as, I'm trying to remember, oh, Shopify is in there as well. You know, so those had a very strong week.

18:02Alissa Coram:ARK-W, the next gen internet, you know, so a lot of the ARK innovation.

18:08Justin Nielsen:It's going to come back.

18:09Alissa Coram:You know, stocks or ETFs really had had some very, very strong week. You're talking about eight, you know, 8 % gains kind of across the board. Yeah.

18:19Justin Nielsen:Take a look at ARKK up 7.4 % on the week. Quite a number of up weeks in a row here, Justin. And for those who say breakouts don't work, I leave you this chart. It's a breakout that definitely, definitely worked.

18:36Alissa Coram:Now, it's important to say that, and I do have a position in ARKK myself, it's important to recognize that they don't always work, you know, and that's something that a lot of people have to remember that, you know, you can have the most perfect looking base. And that just says that there's maybe a higher tendency. But it's it's there's no guarantees here. And that's why we have our risk management rules in place. And we we have profit, you know, profit taking rules, you know, the whole portfolio management rules. rule base is to kind of help you hold through the ones that deserve to be held and get rid of the ones that deserve to not be held.

19:15Yeah.

19:16Justin Nielsen:And as traders who are actively managing our portfolios, I think this is also an example of where there's a time and a place, right, for all sorts of ETFs, thematic exposure, what have you. And with something like this, the fact that you're seeing this outperform, whereas you have it's a very technology focused, but also some that are more in the long term bet kind of category or a little bit more speculative. I feel like that gives us a sense of what's being rewarded in this type of market, Justin.

19:52Alissa Coram:No, absolutely. And I mean, to that end, speaking of speculative, I mean, you've got your your quantum computing. I don't know if there's an ETF that focuses on that, but we've seen a number of the quantum computing stocks doing well this week. I want to give also recognition FFTY, the innovator IBD50, just kind of, again, showing that growth has been really doing well lately. And then one more, UFO. Andrew Channon has been on the show, the podcast a couple of times. This is a space ETF and we've got a lot of space related stocks. Rocket Lab, ASTS are two that I know are in this one. And those have been doing very well.

20:35Justin Nielsen:Yes, absolutely. And just a quick web search. And here's one quantum ETF for the radar here. The QTUM.

20:47Alissa Coram:Oh, and then one more ETF to just kind of recognize is China. Pick your ETF. There's KWeb. There's FXI. But this had a pretty solid looking week breaking out of this kind of tight area. Now, look, I haven't done this myself. So China comes with its own set of warnings. But we would be remiss not to recognize that there was some movement there.

21:15Justin Nielsen:Exactly. K-Web, the China Internet ETF, up 7 % on the week and FXI, which you mentioned, up about 4.3 % on the week.

21:25Alissa Coram:This podcast is brought to you by Federated Hermes. We put our investments through a ruthless vetting process because the market can be unpredictable and we don't think your investments should be. Learn more at federatedhermes.com slash US. Investments are subject to risk and may lose value.

21:41Justin Nielsen:All right, let's turn our attention now to some stocks of note, starting with DoorDash, up 1.8 % on the day right after kissing that 21 day moving average for the first time since it really got going in May. Yeah.

22:00Alissa Coram:So there's, um, we have that green shaded area that lets you know, okay, this is kind of your 20 to 25 % profit taking goal. And it's amazing how often, uh, stocks will get up to that level and they'll decide to, you know, take a little bit of a break. Now you had a little bit of a break before and it just kind of skirted. It's, is that your 10 day or did you switch it to the eight.

22:20Justin Nielsen:I haven't switched it back right now. It's the eight exponential. Okay.

22:24Alissa Coram:Eight exponential close enough. You know, it's they're, they're, they're pretty closely related. So, but yeah, you did have, you know, these pauses along the way and look, those are healthy. It keeps a stock from getting too far ahead of itself, too far extended. Those are healthy digestions of gains. But the fact that this has been trending above the 21 day moving average line, and as you said, just kissing that 21 day moving average line this week and getting a nice bounce and recovery today, even with a lot of stocks, you know, kind of mixed and the index is pretty flat. The fact that this was able to gain nearly 2 % with that support is certainly, I think, something worth watching.

23:03Justin Nielsen:It is. So it seems like, Justin, for those who got in around the leaderboard entry, which was roughly when it cleared the 207 area in May, I believe, perhaps this was a chance to add to an existing position, or some traders may have initiated here with this type of setup. Yeah.

23:24Alissa Coram:And again, you have kind of a level now. With the low of yesterday, that can give you a stop where you're really not risking that much. Just a couple percent here that you're risking if you enter here. And that gives me some comfort to initiate a position, even if I'm a little late in the move, because I will quickly know when I'm wrong if it goes south. And I can cut my loss quickly, not get hurt too much. But there's a lot of upside potential here. You look at some of these numbers and this is, let's go ahead and go to the weekly rule. Oh, we don't need to. It's the annual is right there. I forget that.

24:06Alissa Coram:But, you know, you're seeing that this is going from negative EPS to just in 2024 to positive EPS. And now it's really ramping up that those estimates. So that's something that is really looking positive. You've got some very strong revenue growth. So this is this is no EPS accounting tricks here. This is this has got some strong growth here. And these are not small numbers having 25, 20, 20 percent plus with, billions of revenue in each quarter, that's nothing to sneeze at.

24:41Justin Nielsen:Yeah. And as a busy millennial, I can't say how much of a fan I am of DoorDash. It's come in clutch quite a bit. So I definitely get the fundamental story here. All right, let's go to Toast, Justin. What a tricky stock. But this week, if you go to a weekly chart, up 7.2 % for the week. So finally breaking out after an attempted breakout the previous week.

25:12Alissa Coram:Well, and here's again, where sometimes, you know, for people that are saying, oh, look, breakouts don't work. You could, you know, look at this one. This is one where you might be thinking that if you want to counter Ali's argument. But look, that doesn't mean that it doesn't always work. Sometimes these stocks will kind of change their personality and it remains to be seen. I think it's too early to tell on this one, but this was a strong move above that resistance. And so now it's a matter of, can it stay above there? Look, it's not going to be unusual if this comes in and tests that area. That's very usual.

25:51Alissa Coram:But sometimes these stocks will try once, twice, even three times. And then by the time everyone gives up, that's when it finally goes. And just honorable mention to A-Lab, Asterilabs, which was kind of doing the same thing. A lot of tests of this 100 area finally broke through. We'll see if this can continue from here. But also it's important to kind of note that, you know, a lot of restaurants had been looking good for a while. So Toast could potentially benefit from that. And we also, I believe this was our stock of the day today. So that might be an article worth checking out.

26:28Justin Nielsen:Absolutely. There it is right there. And this is also why, I mean, the personality of a stock is something worth studying. And it's also why I really do like trying to find entries when possible around the 50 day line and then maybe adding on a breakout because this is still holding. its major moving averages, Justin. It's just been a little volatile, a volatile, choppy ascent here. Yeah.

26:56Alissa Coram:And, uh, you know, it's fine if you decide to pass on that, you know, I, I did myself. I didn't, I didn't buy this last time we put it on swing trader, but I'm like, yeah, okay. Um, but, uh, you know, again, it doesn't mean that it can't work. And as long long as you have risk management in place, you could even do a tighter stop and know, hey, I might get shaken out again. But as long as you're kind of managing your risk, you can really kind of give yourself that wiggle room to buy things and give them a chance.

27:26Justin Nielsen:Yeah. Okay, let's round things out with a look at VST in that utility electric power group that we've been focusing on up 6 % Today, Justin, an arguably actionable, not a very traditional entry point, but an entry point here nonetheless. And I feel like a lot of the strongest stocks off of the lows, and this one has more than doubled from its low of 90 back in early April. Kissing that. I don't know why I'm saying that. Touching. I'm just very loving today. It's touching that 100 level, pulling back, trying to mix up my words here of descriptions. I've only been doing this 10 years, and now all of a sudden, twice in one show, I guess it's just sticking with me here.

28:11Justin Nielsen:But up 6 % on the day, I think actionable. What do you think? Yeah.

28:15Alissa Coram:And look, this is something that Leaderboard got into, I think, back in June. So they're looking at a 10 % profit on this. And make no mistake, when you have something that's trending above the 21-day moving average line and then breaks it like what happened on Wednesday here, you know, that that can be a cause for concern, especially if you're raising up your stop along the way. I think moving average lines are a great place, you know, a great way to kind of create a trailing stop for yourself without basing it on a percentage. You're just kind of letting the stock dictate, you know, where where your trailing stop goes.

28:50Alissa Coram:But that doesn't mean like, hey, if you locked in some profits there, you could potentially get back into this. And it doesn't have to be this one. As we saw, there was a lot of strength in utilities. So you have your pick, but it's certainly worth looking at some of the past leaders, ones that maybe you've played, because sometimes you can find second chance saloons in those.

29:13Justin Nielsen:Absolutely. And we'll keep a very close eye on that 200 level, which is where the stock topped out before that deep seek news in January. All right, Justin. Well, thank you so much. Any final words as we prepare for the week ahead?

29:30Alissa Coram:You know, I know we don't have a Webby here, but I wanted to just kind of give a little, you know, nod to his Webby RSI and, you know, the Bob Marley that he typically shows. Look, the Bob Marley is really more for when you're, you know, getting those corrections and, you know, when you're off, you know, how much are you off highs? Are you in the green and in the yellow? So look, we don't even need to pull up a chart. We're in the green, folks. We're at highs, so we know exactly where we're at. And that's a great place to be. In terms of the WebE-RSI, even that, we really aren't seeing those levels of extension that would cause a lot of concern.

30:05Alissa Coram:We're kind of at the two, underneath the two ATR level for both the 21 and the 10 day extension. That would be the histogram and the line. So really not too far extended. I think this latest little sideways action that we had since July 3rd went a long way in kind of letting those moving average lines catch up quite a bit. So that's keeping us in a framework of not too extended, a lot of stocks offering opportunities, breakouts, pullbacks, moving average lines. There's a lot out there. So this is a great time to do your watch list. be ready. And as you mentioned earlier, a great time to also be looking at those earnings that are coming up.

30:51Alissa Coram:So Ed and Lexi do a great job of kind of rounding that out. I mean, I think we've got 200 S &P 500 stocks, over 200 in the next couple of weeks that we'll be reporting. So there is the deluge coming. Be ready for it. And you might not be buying straight ahead of those earnings reports, but sometimes those earnings reports will be a catalyst and certainly worth watching for potential entries. Or even if you don't catch it on an earnings move or an earnings gap, be looking for those digestions because those can also give you second chances.

31:24Justin Nielsen:Well said. And I'll add in my two cents on Webby's perspective without him here as well. My favorite chart that we always look at is the keep it simple chart, which is just your 21 day moving average only. And where's the NASDAQ and the S &P 500 versus the 21-day? We're continuing to hold nicely above that level. So it seems like we've got the green light from that perspective. Yeah.

31:50Alissa Coram:Well, you know what? I'm wondering if you went with the keep it simple because, you know, they a lot of times say keep it simple stupid and they call it kiss. So here you are, right back at the kissing.

32:00Justin Nielsen:Who knows, Justin? All right. Well, that's it from us for today. Thank you. We appreciate it, Justin. And if you want more from Justin Nielsen, check out this week's podcast, which he mentioned with special guest, Dawn Vandenberg. It was a fantastic discussion looking at how to build your portfolio when you see a market turn, how to get that exposure in the early going when you don't know what the leaders are. And then when you do, how you can look at that leaders list to inform the market's health and so much more. So check that out on our YouTube channel or at investors.com slash videos or wherever you get your podcasts.

32:39Justin Nielsen:That's it from us for this week, everyone. Thanks again for watching. We hope you have a great weekend and we'll see you back here next week.

33:03Alissa Coram:This episode is brought to you by MassMutual. When people count on financial guidance, they want a company known for strength, stability, and trust. With the solutions to fit their needs, financial professionals can help people move forward with confidence,

33:19Justin Nielsen:backed by MassMutual's 175-year legacy. Learn more at MassMutual.com. MassMutual.com.