After a hard week we had a strong close into Friday which seem to have the overall market direction resume being in an uptrend. Still it’s recommended to stay cautious on trades as it is still early to say if this trend will continue.
Personally this means not taking aggressive trades and having more cash on the side ready for when the market action confirms the continuation of the uptrend.
While doing my homework this weekend I notice a lot of homebuilders, building materials and home improvement stocks turning up as the strongest at this moment.
This confirms an industry rotation into a different field. This is often a time where you can find some great patterns that are getting ready for a break-out once the market direction is becoming stronger.
The first one is not building related, but chip-equipment: $AMAT
It is ranked #1 in it’s industry group and showed good strength last Friday. The trading volume for AMAT is looking good and helped the good gains last week that pushed it into new highs.
Next another chip stock that looks ready to go higher; $QRVO. However it needs more trading volume coming in pushing it further away from the moving averages and through it’s resistance levels.
Qorvo has built a leading position in supplying radio-frequency chips for 5G (5th generation) wireless communications with very strong fundamentals. It is gaining interest from institutions that are building their positions in it.
Then we go into the house and building related stocks.
First on my watchlist is $MAS.
$DHI has been a great trade in the past as well and continues to look strong.
$W has great fundamentals which fuel this stock. Last year it reported it’s first annual profit.
The Boston-based company offers more than 22 million items via five websites: All Modern, Birch Lane, Joss & Main, Perigold and the flagship Wayfair.com. It also has operations in Canada, Germany and the U.K.
On Feb. 26, Wayfair reported mixed Q4 results but indicated stronger-than-expected growth in the current quarter. The company earned an adjusted $1.24 per share on 45% higher revenue of $3.67 billion. Analysts expected 85 cents on revenue of $3.75 billion.
That marked a third straight quarter of triple-digit profit growth and extended its multiyear streak of double-digit sales gains. The number of active customers jumped 54% to 31.2 million in Q4, with repeat customers placing 72.5% of total orders.
$PHM
$SAM
$CSX
Let me know what stocks are looking interesting to you!