Despite the way it might have seemed, the stock market had really be trading in a relatively tight sideways range for the past two weeks...until Friday. Since the past two week had followed a very nice (6.6%) rally, Friday's nice gain begs the question as two whether Friday's action was the beginning of another leg higher for stocks.

To be honest, we do not think it will. As we mentioned in our weekend piece ("The Weekly Top 10"), the stock market has become quite overbought on a short-term basis...and sentiment has become much more bullish. Therefore, we believe the stock market is becoming ripe for a pull-back. Unless the trade negotiations completely break-down (like they did in May), the pull-back should not be an outright correction, but it could/should be a tradable one.

Having said all this, we do admit that a "melt-up" is possible. Therefore, if we're wrong...and the stock market does rally further from here...one stock that has a lot of upside potential is GS. It is testing a key resistance level and any meaningful break above that level should help it outperform the rest of the market over the balance of the year.

To see the level we're talking about and to get his kind of guidance on a daily basis,please click here to subscribe to my investment newsletter, "The Maley Report" (TheMaleyReport.com).

THE WEEKLY TOP 10

Table of Contents:

1) The stock market has already priced-in a “Phase One” deal.

2) Earnings growth (and future estimates) do not justify this level in the stock market.

3) We’re seeing small (repeat, small) cracks ...

• We're close to a trade deal....again.
• Any deal will be a much smaller one than the one they were "close to" back in April...when the stock market was more than 5% lower.
• Will Hong Kong cause a ...

In our opinion, both the U.S. and China want and need a “Phase One” trade deal…and thus one will be signed in the not-too-distant future. Not only do both side want and need one, but a significant break-down in ...

• The XLI industrial stock ETF has broken key resistance, but it’s getting overbought near-term
• GE is coming off of a VERY, VERY overbought level and looks ripe for a tradeable decline.
• FDX is overbought near-term, but has a lot of ...

The energy stocks have been lagging the market all year (until very recently)...and they are now poised to breakout in a powerful way if the energy stock ETF (the XLE & XOP) can break above the key resistance levels ...

• MU is a stock trader's dream. It's liquid and it's never boring. It either rallies in a meaningful way...or declines in a significant way.
• We're watching the 50 DMA on MU. Whichever way it "breaks ...

China moves the goal posts (again).

There has been another change in the trade negotiations with China...as China is now asking for a scaling back of some existing tariffs as a prerequisite for signing the "Phase One" deal. We ...

China has moved the goal posts on the "Phase One" trade deal...by asking for the U.S. to remove some of their existing tariffs. If President Trump caves-in to these demands, it will only prolong the "Economic Cold War ...

• Good day for stocks on Friday, but getting overbought near-term
• A mild, short-term pull-back would actually be healthy
• Natural gas is breaking out
• However, it needs more upside follow-through for confirmation
• COG is the stock with the best potential in ...

A quick look at the short-term chart on gold.

Gold has risen back above its 50 DMA today…and it has broken above its short-term trend-line (going back to the early September highs). If it can now break above $1,520 ...

• Powell indicates that rate HIKES are off the table…but who really thought they were ON the table between now and the 2020 election???
• Over the past 10 months, Chairman Powell has skillfully moved the ball firmly into President Trump’s court ...