The market put together another constructive week, with the major indexes recovering following some early weakness and more stocks setting up in constructive launching pads.
That said, the rubber will likely meet the road during the next three weeks as earnings season revs up—a bunch of powerful breakouts would dramatically raise the odds that the market is beginning a sustained rally, but if the sellers feast on stocks following their reports, it’ll be best to take things slowly.
For now, we remain neutral—buying a stock here or there is fine, but booking some partial profits on the way up and holding a chunk of cash on the sideline also makes sense.
This week’s list contains a mix of stocks already out to new highs, many that are setting up, and a few that are recovering well from huge declines. Our Top Pick is near the top of its launching pad and doesn’t report earnings until December.