Howdy folks, and welcome back to the new trading week.
Before we get too far into anything else, let's first show you what I think is the most pressing item on today's agenda... a look at the bullishness we've been seeing from Featured Stock Sack Lunch Productions (SAKL).
Frankly, the chart speaks for itself. After hitting a support level at $0.11 last week, the bulls sprang back to life. Over the course of the past two days the stock's really rekindled what's become a long-term uptrend, crossing back above the 20-day moving average line. Better yet, we're starting to see the volume pour in today, suggesting the majority of traders are getting back on board despite a little late-day profit-taking
I think we're in good shape for a move back to the recent peak around $0.15. But, I also have this funny feeling we're going to see Sack Lunch Productions shares actually clear the $0.15 mark and sustain the uptrend that was put in place going all the way back to February.
Remember, this is only a $9.3 million company projected to generate $18 million worth of revenue this year, and log a swing into significant profitability -- $3.4 million -- as well. I don't see the market allowing SAKL to remain at this low valuation for much longer. The current runup is just part of that right-pricing effort.
Anyway, if you're not familiar with the Sack Lunch Productions story, I'll refer you back to our initial look from May 31st. This is one amazing story, and the word's starting to spread.
By the way, Peter Graham took a look at some of the recent news from Sack Lunch Productions today, and talked about how that may affect its current and future value. Check it out.
Speaking of commentaries posted at the website, Peter also gave us a preview of Wednesday morning's Q1 numbers from SiteOne Landscape Supply (SITE). And, Jim Robertson took a look it budding shining star Lightinthebox Holding Co. (LITB), which was up more than 8% today and has gained more than 20% over the course of the past three trading days.
As for the overall market, we try and limit our philosophical looks at stocks to an "as needed" basis, but I think in light of today's no-Brexit induced jump, it's high time we took such a thorough, detailed reality check.
I'm going to use some of what John Monroe said to Elite Opportunity Pro members in their newsletter today to paint the picture. He explained:
"... you can also see while the NASDAQ is the clear laggard compared to the S&P 500 on Friday, and then again this morning, we'll need to see far more leadership from the NASDAQ if we're going to be convinced the recent reversal is one worth playing for an extended period of time.
Why? Because ever since this multi-year rally began back in April of 2009, it has pretty much been the NASDAQ that has led the big moves higher, and we're not getting that right now. As a matter of strong opinion, even if the S&P 500 made another new all-time high above its previous high of 2,132 in May of last year, it won't necessarily mean the markets are off to the races.
If a new S&P 500 high comes on the heels of the NASDAQ testing and failing its retracement level of [removed by editor] on this daily chart here, the new high on the S&P 500 could end up being one of the bigger false breakouts we've seen in quite some time.
I know that's pretty leading and very speculative in nature, however, we've seen the S&P 500 do this on several occasions over the last year or so. Meaning, either a new high or pretty darn close to it, only to see the markets break down miserably on the heels of those moves."
Make sense? Simply put, as bullish as today was (and there's room for more upside), this is a flawed bullishness. The NASDAQ should be leading. It isn't. Maybe it will take the lead. You can't trade based on a "maybe" though, especially when stocks are as overvalued and as confused as they are right now.
For what it's worth, here's a look at the daily chart of the S&P 500 as of today's close; the NASDAQ Composite is mostly John's domain. Even so, you'll notice the buyers backed off as Monday's closing bell approached, and the VIX seems to be poised to break higher again after finding support at what used to be a ceiling around 16.9.
Of course, the $64,000 question is, what do you do about it? This is where the Elite Opportunity Pro really starts to shine. John's already got a strategic trade lined up. He's already got his entry spot and ideal exit point picked out. From here it's just a waiting game... waiting for the last couple of things to fall in place. John's the best when it comes to planning the trade and trading the plan, so if that's what you're trading has been missing, I can't recommend the EO Pro enough. As we mentioned last week, it's for professionals, but we have a bunch of individual traders that get the service and love what it does for them.