Last week the market faced a pullback. However, the four major indices closed above Thursday's high on Friday ending the week on a positive note. With each index potentially poised to run towards highs, we should prepare our watchlist with picks from the top-performing sectors.
Looking at the top 3 performing sectors over the past 3 months we have SPDR® S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) up +29%, Invesco Solar ETF (NYSE:TAN) +15%, and VanEck Semiconductor ETF (NASDAQ:SMH) +14%.
If the market is looking to push higher this coming week, we should keep these top sectors in mind as equities within these areas will have a much greater chance of making huge gains.
Starting with oil & gas exploration, Callon Petroleum (NYSE:CPE) is holding above its 10-Day moving average and support from the $60.50 area. Additionally, CPE has made positive earnings growth for the past 5 quarters and looks ready to clear recent highs if the market permits.
For the solar space, Enphase Energy (NASDAQ:ENPH) is a top-performing solar stock sitting near highs. Though its high price makes it tough to find a perfect risk level, it's worth watching ENPH for an entry point since it’s a major leader in the solar sector.
When it comes to semiconductors and the tech space, NVIDIA (NASDAQ:NVDA) has held over its 10-Day moving average and has consolidated underneath $308.50. Timing NVDA with a mover higher in the Nasdaq 100 Invesco QQQ Trust (NASDAQ:QQQ) is key for this mega-cap stock. Additionally, if NVDA can clear the $308.50 price level it could be ready to make another quick move past highs.
Nonetheless, these are three great picks to add to the watchlist/ However, keep an eye on the major indices to hold and move higher. If Monday does not follow through, stay cautious as bulls could easily be trapped as many loaded up on equities Friday anticipating a move to highs. If this is the case, sit on the sidelines and keep these stocks in your watchlist for when the time is right!
ETF Summary
- S&P 500 (SPY) 467.38 support.
- Russell 2000 (IWM) 236.31 new support.
- Dow (DIA) 359.48 support.
- NASDAQ (QQQ) 387.53 support.
- KRE (Regional Banks) 72.90 support area.
- SMH (Semiconductors) 291.55 support.
- IYT (Transportation) 275.11 minor support.
- IBB (Biotechnology) Needs to stay over 153.38.
- XRT (Retail) 99.80 support.
- Junk Bonds (JNK) needs to clear over the 10-DMA at 108.73.
- SLV (Silver) 23.53 resistance from 200-DMA.
- USO (US Oil Fund) 56.54 resistance.
- TLT (iShares 20+ Year Treasuries) 146.67 resistance from the 50-DMA.
- DBA (Agriculture) 19.57 new support area.