Last week we started buying while it still felt uncomfortable, and tonight’s Established Leaders scan is where I’m looking after the rally.
On Thursday I published When It’s Time to Buy, Nobody Will Want To.
Today the S&P 500 rallied about 1.5% and the Nasdaq gained 2.3%. Intel, one of the stocks I walked through and bought in that article, finished more than 12% higher on the day.
To everyone who took a planned entry alongside us last week.. congratulations. It takes something to put money to work when the reasons to stay away still sound convincing.
And they sounded pretty convincing. Geopolitical headlines. Oil. Higher rates. A market that had been pulling back. Waiting for everything to settle down was an easy decision to defend.
The AAII survey for September 16 had 53.3% bearish against just 28.8% bullish. That doesn’t tell us exactly how everyone was positioned, but it does show how negative the mood had become.
That’s how you get caught leaning the wrong way: you keep responding to the reasons the market fell while the stocks you want to own have already started responding differently.
Last week, the data gave me a reason to start buying. Sentiment had deteriorated, selling was accomplishing less, and individual stocks were breaking out. So we bought. The INTC, SPCX and more decisions are there in the original article, dated before today’s rally.
Today is encouraging. I’m happy we were doing the work then. Now I want to keep doing it, because the next entry has to make sense at the next price.
Tonight’s scan gives us 55 Established Leaders across nine sectors. The median TTI Score is 85, with 31 names at 85 or higher and a top score of 98.
Technology and healthcare account for 39 of the 55. There’s a lot to work through without treating every green candle as something we need to own.
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Here’s the daily snapshot of our Daily Action Report:
