Top stocks Netflix (NFLX), Square (SQ), Splunk (SPLK), Diamondback Energy (FANG) and E-Trade Financial (ETFC) found
support at their 50-day moving averages in Thursday's stock market rebound. They all rallied above the key level in heavy volume as the S&P 500 index and Dow Jones industrial average shot up more than 2%. That contrasts with Apple (AAPL), which hit a wall at its 50-day. Apple tumbled in the final minutes to close in the lower half of its daily range.
support at their 50-day moving averages in Thursday's stock market rebound. They all rallied above the key level in heavy volume as the S&P 500 index and Dow Jones industrial average shot up more than 2%. That contrasts with Apple (AAPL), which hit a wall at its 50-day. Apple tumbled in the final minutes to close in the lower half of its daily range.
The major stock market averages rebounded, repairing some damage. The S&P 500 index and Dow Jones found support at their 200-day moving averages. The Nasdaq composite rose above Wednesday's session high.
But investors also should follow the action of top stocks. In a rally attempt you want to highly rated stocks outperforming as a sign stock market leadership. And you also want to be building a watch list for when the stock market uptrend is confirmed.
These Top Stocks Are Highly Rated
These top stocks deserve that label. All five have Composite Ratings above 95. The Composite Rating combines several IBD proprietary ratings into one score. All-time stock winners often have a Composite Rating of at least 95 near the start of their big runs.
Netflix has a best-possible 99 Composite Rating. Square and E-Trade Financial have 98 Composite Ratings, Splunk at 97 and Diamondback Energy at 96.
By: Ed Carson (Investor's Business Daily).
Photo: Schaeffer's Investment Research.
Review: Emerging Market Formulations & Research Unit, Flagship Records.