The usual suspects.
That's what I like to call the obvious moves that happen on the up days, the stocks that are so juicy that they simply can't be avoided.
Then there's the unusual suspects, the stocks that are down that you would expect to be up.
I have ten that were obvious to go higher and ten that should be rebounding and aren't.
I will do the good ten here. And then the bad ten in a second piece.
First obvious stock: Boeing (BA) . This is one that is representative of this particular era. It's all about a long-lived multi-DECADE move that we are still really early on. I think that this stock can get to $400 and the declines we experienced last week did nothing to hurt the story.
Two: Amazon (AMZN) . I cannot believe the grief I have been getting about advising people to keep buying Amazon on the way down. It is almost as if I have never recommended it and just started talking about it at $1450. That's classic behavior of people whom I really have to question their staying power in this new, more volatile world. Amazon is the Death Star and whatever it goes after it can hurt, not destroy, but hurt. The fact is that the three businesses, retail, web services and ads are all excellent, so the sell-off to me is a reset on all growth games that got overdone.
It shocked me that United Health (UNH) could continue to go down for as long as it did and that investors didn't provide a floor as they always have just because of concerns about Amazon, JP Morgan (JPM) and Berkshire Hathaway (BRK.A) getting together to try to solve the health costs that United Health is supposed to be doing. I think the selling's over.
McDonald's (MCD) reported a fantastic number but the stock was too high when it reported. But then the stock plummeted to five month lows where I have to expect that the company is in there buying hand over fist. This is one of THE most popular all-seasons stock that money managers can't seem to resist, kind of like the way that Starbucks was at one point but is definitely not anymore.
Caterpillar (CAT) had worried me because you needed to see some lift to the commodities group and some decline in the dollar -- both of which were against you in last week's hellish display of everything going wrong. The president's infrastructure proposals are probably helping it, too.
The numbers are probably too low here but last week nobody cared. Now they do.
Let me give you a two-fer: Visa (V) and Mastercard (MA) are the ultimate Fintech stocks and they both blew away the numbers although Mastercard was considered to be the better of the two. I think they are indistinguishable at various times but right now the edge is indeed to MA. The institutions just can't resist these stocks.
United Technologies (UTX) had been a real horse. Until this morning when we read that its Pratt & Whitney engines have issues. I question the story because I think that this could be just a little more than routine maintenance.
The fact that it shrugged off the downside is typical of how this stock was BEFORE the big downturn. Good sign that it is coming right back.
Union Pacific (UNP) is the rail that everyone wants in on and I wondered how long it would take to get this one to reverse and go back up. Here it is. This is an incredible stock because if rates go up you would think commerce would go down. Hmm, maybe rates have peaked?
Not clear because JP Morgan (JPM) wouldn't be climbing if that were the case. The fact that JP Morgan's stock is going up tells me that you better be really careful if you think rates are done going higher. We own this for ActionAlertsplus.com and, if you are like we are, anxious to buy more, but it always seems to be restricted so we have missed still one more downside move for what 's becoming the ultimate blue chip.
Finally, there's Netflix (NFLX) . I was shocked they got to this one at all. It is that strong a stock. Looks like nothing's bullet proof, even the strongest ,but not it is back on target.
Now I could have included Workday (WDAY) , Salesforce (CRM) , VMWare (VMW) and Adobe (ADBE) because they have historically been go-to names for uber growth funds. But the stocks I am writing about are much more about plain vanilla funds.
I think it shows those funds, after being shellacked last week have regained the high ground and are raining shells on the bears.
Keep this list handy. If we get a retest these are the go-to stocks of the companies that institutions just gravitate to every time there has been a sell-off and a bottom looks like it is being put in.