Technical Pro On Stocks To Watch Amid Market Volatility

TL;DR

In this podcast episode, David Keller, chief market strategist at stockcharts.com, discusses the current market conditions, the importance of learning from setbacks, and how flying a plane can help with investing.

Transcript

okay hello everybody and welcome to investing with IBD for October 9 2019 I'm your host Arusha Pearson with me today is David Keller chief market strategist at stockcharts.com and president of Sierra alpha research thanks for being here David absolutely good to join you on today's podcast we will talk about the current markets how learning to fly c... Read More

Key Insights

• 🥳 The market is under pressure, with distribution days and indices below the 50-day moving average.
• 🧑‍⚕️ Market breadth and sector rotation indicators show concerns about the overall health of the equity market.
• 🧑‍🏫 Learning to fly a plane teaches important lessons about situational awareness, routines, and systematic decision-making that can be applied to investing.
• 💄 Homebuilders, like Pulte Homes, have displayed resilience and strength in a choppy market, making them attractive investment options.
• 🖐️ AT&T is a defensive play with an attractive dividend yield, positioning it well for uncertain market conditions.

Questions & Answers

Q: What are the key concerns for the market, and how are market breadth and sector rotation indicators reflecting these concerns?

Market breadth indicators, such as the percentage of S&P 500 stocks above their 200-day or 50-day moving averages, show a decline in stocks recovering their moving averages. This indicates a lack of strength in the market's underlying trend. Sector rotation ratios, like consumer discretionary versus consumer staples, have also shown a shift toward defensive plays, raising concerns about the long-term health of the equity market.

Q: How can learning to fly a plane help with investing?

Flying a plane teaches valuable lessons about the importance of situational awareness, routines, and systematic decision-making. These skills translate well to investing, where having an awareness of market conditions, following a routine, and making objective decisions are crucial.

Q: Why are homebuilders performing well in the choppy market, and what makes Pulte Homes a compelling stock?

Homebuilders, including Pulte Homes, have shown relative strength and consistent uptrends in the face of market volatility. Pulte Homes, in particular, has a strong chart pattern and favorable fundamentals, making it an attractive choice for investors.

Summary & Key Takeaways

• The market is under pressure with several distribution days, and the indices are below the 50-day moving average.

• Market breadth and sector rotation are concerning factors, indicating a cautious perspective on the health of the equity market.

• Individual stocks, including AT&T, Pulte Homes, and Nike, have shown strength and resilience in the choppy market.