After a lively Thursday, Friday turned calm, but the S&P 500 and Nasdaq Composite still closed the week a little higher.
What Happened This Week
- Indexes reached new peaks
- Searching for strong‑performing stocks
- Free live event on upcoming earnings
Stocks End the Week on a Positive Note
When the market touches record levels, it can feel risky to add more shares. Some wonder if a short pull‑back is coming, while others fear missing the next climb. These are the thoughts many investors have when the major indexes sit near all‑time highs.
Next week looks quiet unless surprise news appears. A few retailers will report earnings, but there are few big economic releases. How should a cautious investor get ready?
Simple Scan for Strong Large‑Cap Stocks
One tool I use often is the SCTR Scan. It looks for large‑cap companies whose StockCharts Technical Rank (SCTR) moves above key levels—76, 78, or 80. A higher SCTR score means the stock is showing more technical strength.
📈 My SCTR scan criteria: [country is US] AND [sma(20, volume) > 100000] AND [[SCTR.large x 76] OR [SCTR.large x 78] OR [SCTR.large x 80]]
When I ran the scan after Friday’s close, 25 symbols met the rule. Seven of them were strong enough to add to my watch list: Citigroup (C), J.P. Morgan Chase (JPM), Lattice Semiconductor (LSCC), NVIDIA (NVDA), Pinterest (PINS), Charles Schwab (SCHW), and Occidental Petroleum (OXY).
All have interesting charts, but Lattice Semiconductor catches my eye the most.
LSCC is bouncing around its 21‑day exponential moving average. The price sits between the 50‑day and 200‑day simple moving averages, and the Relative Strength Index has lingered near 50. Trading volume is light, so the next move could go either way.
If the stock breaks higher with strong follow‑through, I might consider buying. If it falls, I could look at a bearish options play, such as a short call spread or a long put spread. Options tools are available to members of StockCharts.
Free Live Session This Weekend
Tom Bowley, chief market strategist at EarningsBeats.com, will host a free live chat on Saturday, August 22 at 10 AM ET. He’ll cover four warning signs to watch as we head into September, a historically tough month for stocks.
Mark your calendar and join the conversation!
Have a great weekend!
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