Indexes were in the red most of the session Monday but a late day rally pushed things back to break even. The S&P 500 fell 0.01% and the NASDAQ gained 0.01%. That’s quite rare. Much like Friday it was quiet out there – the 4 day Hamptons weekend effect! The National Association of Realtors reported the sale of previously-owned homes rose 4.9 percent in May to an annualized rate of 4.9 million, versus a 1.5 percent gain the month before.
The NASDAQ is resting quite nicely here just under old highs as it allows its 10 day moving average to catch up. A similar situation as the S&P 500 is detached from any meaningful support and the 10 day moving average is moving up as a support.
Lululemon Athletica (LULU) which has had a rotten year climbed as the founder of the yoga clothing retailer reportedly explored options including a proxy fight or joining a private equity firm in a buyout.
3D Systems (DDD) – a name we identified about a month ago coming out of a potential (bullish) inverse” head and shoulders” formation continues to act very well here. This one also had a bit of a “cup and handle” look to it after its initial spike in late May and retracement in early June.
Yelp (YELP) continues to act well here also. If you are in this trade here there is a very easy level of support to see just above $71. If it breaks down below that then this trade is probably over short term.
Tesla Motors (TSLA) also is back as we continue to see money rotate to the momentum stocks that had a very rough spring.