Investing Update: 10 Stocks On My Watchlist
What I'm buying, selling & watching
The S&P 500 finished in the green for the 9th consecutive session. It’s the 2nd positive week in a row and its best streak since April 2004.
In those past 9 sessions the S&P 500 is up 10.4%. The best rally since April 2020.
The week was capped off with a better than expected jobs report. The US economy added 177,000 jobs in April. That was above expectations of 138,000. The unemployment rate was 4.2%, which was in-line with expectations of 4.2%.
That now makes 52 straight months of job growth. The 2nd longest streak in history.
With the jump in stocks Friday, the S&P 500 has now recovered all the losses following the tariffs announcement.
The Nasdaq also has clawed its way back to the 200-day for the first time since March.
Are we in the midst of a bear market rally? Or is this the bulls regaining control?
I think that’s all going to come down to if we see a recession or not. If there is no recession the lows are in. I discussed this back on April 19th Investing Update: Is The Worst Over? and said the following.
We saw concrete floor type support of 4,835. That’s also the 2022 high. I believe that 4,835 level will prove to be the bottom.
So far, that has been the right call and it has been straight up since that point. That level will prove to be the bottom unless we see a recession. If we see a recession, expect that 4,835 level to be tested again.
Market Recap
Weekly Heat Map Of Stocks
What About May?
May has been rather weak for the S&P 500 historically. It’s has only had an average gain of 0.2% going back to 1964. Then the next month June has also had an average return of just 0.2%.
But as Ryan Detrick points out, May has been positive in 9 of the past 10 years.
On the flip side, we are about other enter the worst 6 month stretch of the year.
10 Stocks On My Watchlist
Since I don’t make a lot of stock moves, many have asked me for what stocks outside the ones I currently own are my favorite. That’s a valid question as I only own 9 stocks. I will usually only hold between 8 and 12 stocks.
I do keep a watchlist together of about 30 stocks and update it every week. Some stocks get added or removed and I do keep them ranked. The stocks I currently own are not on that list. They’re clearly my favorites! Here are the top 10 stocks on my watchlist today.