The NASDAQ made all-time highs yesterday when it reached the monumental 2000 levels of 5132. This year’s rally has been choppy, but the NASDAQ is up 1.7% from its follow-through day on 5/14/2015.

As previously noted, it’s best for investors to maintain long equity exposure as long as the current market conditions are permitting. At the beginning of last week, there were approximately 42 stocks setting up in sound bases in the MarketSmith Growth250 Near Pivot list. This indicates that there are many opportunities to be found for the prudent investor, even though the indexes have been relatively choppy.

Currently, many of the former leading stocks that took time off to build bases last year are starting to show strength by finishing the right side of their bases. Investors should pay especially close attention to these stocks because it demonstrates institutional support in many of the well known stocks that could potentially lead the market higher.

In addition to many leading stocks building actionable bases, the market is starting to show signs of emerging leadership. New stock ideas are appearing in many industry groups, such as biotech, auto-manufacturers, business advertising, and retail-restaurant groups.

As always, if the current market conditions start to weaken, it’s best for investors to pay close attention to their overall portfolio risk and individual stop losses. If you have any questions about finding stocks building bases in the MarketSmith Growth250 or would like to evaluate new merchandise in leading industry groups please contact our product coaches at 800-424-9033 or email us at reachus@MarketSmith.com

Happy hunting,
The MarketSmith Team
Jason Thomson