Stocks Hold Up Ahead Of Retail Reports, Powell Speech: CCJ, RCL, TFPM In Focus | Stock Market Today

Good afternoon everyone and welcome to stock market today for Monday August 18th I'm Alexis Garcia, and if you're wondering hey, that's not Ali Corrin. She's out on maternity leave We're so excited for her and we're going to miss her But rest assured you're in good hands and two of those hands that are here to help me break down All that you need to know about today's market action is our IDD markets writer Ken Shreve Ken how's it going? Two hands ready to go So Ken what do you have on the plate for us today because it seems like a lot of investors are waiting really for Jerome Powell and Jackson Hole comments at the end of the week. So what do you have for us? Well, you're right Alexis Kind of a quiet week in terms of earnings We are going to start to see a lot of retail earnings reports You know come in this week and then Jackson Hole is going to be a big headline at the end of the week on Friday when Jerome Powell speak so The market itself still looks quite good indexes holding up near highs Really not wanting to go down holding above short-term moving averages. So for stocks, let's take a look at Cameco CCJ. This is a uranium minor looking pretty good fundamentally and technically in the cruise line space Let's take a look at Royal Caribbean RCL and then finally the gold stocks kind of a mixed bag here But let's take a look at triple flag precious metals TFPM All right, Ken sounds good. Let me share my screen here and we can rifle through the indexes Starting with the S&P 500 You can see closing essentially flat for the day up fractionally Let's look at the Nasdaq composite that index again up Fractionally on the day and we can take a look at Dow Jones industrial average that went down slightly today and Small caps can we've seen this market rotation here leading the day today up about four tenths of percent. So Talk to me about the market action because if you caught Friday's extended version Mike Webster went through what he thinks is going on and kind of Raising the flag a little bit in terms of you know, it looks like maybe the markets running out of gas Is there cause for concern but Walk me through the market action today and you know, is there a cause for concern or what are you seeing? Well, I think I think you know Mike Mike Webster senior market strategist on IBD live just said, you know He's been talking about some of the stalling action that we've seen on the on the Nasdaq composite probably more so on the the Nasdaq than the S&P 500 but you can see just times You know when the Nasdaq eventually went over that 21,000 level for the first time it it kind of reversed lower Yeah, and then it gapped below its 21 day moving average and it's been it's been coming higher but there have been several instances where the the Nasdaq has opened strong and then kind of Faded into into the close. So he's acknowledging some, you know stalling type action in the Nasdaq But I also know he's he's also looking at a lot of leading stocks out there that are, you know Still holding up. Well, so, you know, we're seeing some some yellow flags But when you look at the just the price and volume chart Alexis of the Nasdaq chart You can see it's still holding comfortably above its 10 day moving average. It's 21 day moving average. So indexes are still showing a lot of strength Pull up the Russell 2000 if you don't mind Yeah, so the the Russell 2000 is very interesting because this index had a bona fide Breakout last week. I mean just a really really strong move up towards that 226 high and then it followed through the very next day I particularly like what the Russell 2000 has been doing over the past three days Notice how it's been holding on to the bulk of Those gains over the past two days trading very tightly showing a lot of Strength and support so really, you know All the indexes are still showing a lot of a lot of strength and support out there Even the Dow Jones Industrial average it took that one a while to to hit an all-time high it did so Friday It wasn't such a great day for the Dow because it even though it was up sharply earlier in the day It did give back a lot of those a lot of those gains But nonetheless it was it was an all-time high for the Dow on On Friday and then with the S&P 500 looks looks very similar to the to the Nasdaq a composite here these are your two two leading indexes that are just perched near all-time highs and Really showing a lot of a lot of strength. Like I said above there. They're short to moving averages. So Even though we're you know near the end of second quarter earnings season we are at a time where You know, we're going to hear from Walmart and Target this week TJX companies and raw stores in the discount space So we'll get more and more headlines this week. And then of course the Jackson Hole Economic Symposium is is Friday That's an annual event that the Fed the Fed chairman or chairwoman whoever it is on any given year Talk on monetary policy, maybe get some more insights on interest rates, you know, the market is still debating You know how many rate cuts there are gonna be this year. The Fed is still grappling with the inflation a Softening jobs market. So still a lot of questions out there, but the market itself is really holding quite well here well, Ken, thanks so much for that analysis and let's take a look at a sector ETF here XRT that's the spider S&P retail ETF and as you mentioned a lot of retail earnings this week This went up about nine tenths of a percent today. We see that it's in that consolidation Look like it peaked above that buy point. But what are your thoughts here with retail and what are you? Expecting to hear this week. Well, you know I thought it's interesting looking at the XRT because this is just a really a strong technical picture Just like the the broad market you can see a real strong move for two days last week when it went across that recent high of 60 Excuse me, 83 32 and then for the past three days It's just kind of been sitting sitting tight and holding strong here So, you know still still concerns out there about the economy But when you just look at the number of retail stocks that are acting pretty well here XRT I think is kind of symbolic of the strength and a lot of these these retail stocks so even though there are concerns about inflation and and possibly a Slow down later this year. We've seen a lot of retail stocks You know holding up well, so I suspect I suspect we'll We'll hear pretty pretty good things. I'm not sure that the outlooks over the next couple of Quarters are going to be filled with a lot of you know, clear visibility Sure companies will you know be talking about tariffs and and this and that but it's been a great second quarter earning season So far, I expect that the retailers Will be singing a pretty pretty bullish tune like like the other companies have that have imported in recent weeks All right, Ken. Well, let's move on and take a look at some individual stocks starting with camco here And we see we have a 1.6 percent gain today a nice move finishing in the upper range of that Trading zone there and you know again really solid above the 21-day line and the 10-day Yes, so with with with chemical this is just a very liquid institutional quality stock they're a uranium miner Beautiful breakout from from a cup base over the 60 level and then this was just a really a classic first test of the average Cameco eventually, you know, it came down to the 70 level hit that low of 70 7082 yeah closed up off its lows and but really it's making a good case for support at the Average or so anytime a stock breaks out of a base pulls down to that 50-day line and makes a convincing case for support We look at the stock as as actionable and that's the same on the weekly chart here, too If you look at a weekly for Cameco, this is just a beautiful tight trading near the 10-week line so and the market is acting well, you're seeing a lot of good setups Like this one again a beautiful move When it initially broke out over that 60 level and this is just a nice test of the the 10-week moving average on the on the weekly chart you've got a very very strong relative strength line on the on the daily chart up near highs and Also on the weekly chart as well So chemicals got a lot of positive qualities the composite rating of 99 tells you you know Right away that you're dealing with a company with pretty good earnings and sales and that is certainly the case over the past three quarters CCJ robust our earnings and Revenue increases over the past over the past three quarters. So fundamentals and then technicals align here. That's what we like to see Does the volume here? Concern you at all can it seems like it's dried up a bit Compared to when that sell-off happened Back in late July, but any thoughts there? Yeah, so not not not not so much Anytime a stock pulls back and test support you typically want to see that happen in in light volume and then when support does support Comes in. Yeah, it's nice to nice to see some Conviction about haven't haven't seen that yet with with chemical but I do like the fact that the pullback has been orderly and It really is making a good case that it's it's finding support here Especially in light of the price action on on Friday when it kind of reversed higher Came down touched of the 50-day line and then it extended gains today. So volume has has dried up All right, well, let's take a look at Royal Caribbean shall we we're on the daily here a nice gain today of 4% Ken and Talk to me about this chart because again another nice breakout But a recent test of this 50-day line that a nice solid move today for Royal Caribbean Yeah, this was a nice a nice bounce with with conviction and you can buy it by conviction I mean the volume really picked up the pace here so for swing traders, maybe aggressive traders might have gotten a buy signal today with that nice move above the The 10-day moving average, but this is a little similar to CCJ In other words, it's a stock that broke out of a base and now it's coming down and testing the 50-day for the first time So our CL looks looks strong here. The cruise line operators are going to be in the news You know tomorrow morning because one of the big leaders in the group Viking holdings BIK is is going to be reporting earnings Tomorrow so that typically, you know, we'll move the other cruise line operators But I believe Viking is going to be out. Yeah before the before the open tomorrow So you can see Viking has been a really really strong performer In this group, but well Caribbean, so, you know, I'm not not not too bad itself Testing its 50-day line and looking pretty good Now, let's take a look at triple flag precious metals Ken. This is a gold stock This was down about nine tenths of a percent today But still in that buy zone looks like it's maybe testing that 2545 by point so why is this one on your radar? well, because you know we often say when a stock breaks out and you did have a really nice breakout over the 25 level for triple flag precious metals And then what it did is it just it came down to its 10-day moving average and basically retested that prior by point of 25 2545 so you see that you see that happen a lot in individual stocks sometimes the stock breaks out and it never it never retests the by point but plenty but plenty do and Triple flag is is doing that right now So you got you know the heavy volume break out to me It looks like an orderly pullback to the 10-day moving average still, you know clearly in that 5% buy zone from the 25 45 entry so You know gold stocks have been a mixed bag some are still working others not so much but Triple flag. I believe this is an IBD sector leader or it has been in the past So again fundamentals are pretty pretty impressive here If you just look, you know look down at the bottom of the chart here You can see triple digit earnings increase in its latest quarter You can see the top-line growth has been very very strong as well So once again, not a sub not a surprise to see a very high composite rating here fundamentals All right, Ken well, thank you so much for your insights today and That wraps it up for us for now. We'll be back with more market analysis tomorrow morning starting with IBD live You can head on over to investors comm slash IBD live for all the details there And be sure to tune in to investing with IBD podcast this week. We'll be going live at 430 Eastern on Wednesday. We have Steve pork with Robin Hood markets on he's their chief brokerage officer So I'm gonna get some great insights from him on what retail traders are doing and what that platforms doing To get the next generation of investors Going on that platform. So be sure to tune in for that. Thank you so much for watching. We'll see you back here tomorrow