Examining the Market's Haves and Have Nots

Jordan Kimmel |

For_Sale.jpgIf all you are seeing are foreclosures and bombed out areas- maybe you are looking in the wrong neighborhood. I see so many great looking companies achieving tremendous growth that I am amused when I hear people pointing to the weakest companies and suggesting “the economy is crashing and nobody is working”. Leading companies are showing up on my list in the technology, healthcare, housing, and consumer discretionary sectors. These are the true growth sectors. The sun continues to shine, and there is still time to make hay.

In Real Estate and Investing...Location, Location, Location

I run my Magnet® model every day. I run a screen to identify “Elite Magnet Stocks” and run another screen looking for stocks to go short. If you looked at the companies in each list, and tried to draw a macro-economic picture- they would tell you very different stories. One “Elite” list contains a list of companies with increasing revenues, profit margins, and cash flow. The potential short list has the opposite –companies with deteriorating fundamentals. When people ask, “How is the market?”- I like to say it is very similar to real estate. The real estate market is very different in NYC and Mumbai than it is in Buffalo and Beirut. It’s your choice of where to invest.

I continue to look for signs of the market topping, but just do not see an end to the positive trend. The public and the media continues to be negative, and the market just continues to climb the “Wall of Worry”. Stick with the “Haves”...and let the others go their own way.

 

Longs- (HDS) , ($QRVO), (SWKS) , (NUGT)

 

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Companies

Symbol Name Price Change % Volume
HDS HD Supply Holdings Inc. 39.08 -0.57 -1.44 2,518,144
QRVO Qorvo Inc. 50.54 0.51 1.02 1,169,364
SWKS Skyworks Solutions Inc. 73.34 1.56 2.17 1,927,115

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