Calls for the week – NASDAQ, Aristocrat (ALL) and AMP

**This is an extract from the Market Matters Weekend Report from 8 September. Click here to get access to the full report and more

Chart of the week.

The US NASDAQ often leads American stocks and at present its climbing a wall of worry in our opinion, a break below the rising trendline shown below is likely to see acceleration to the downside but until then the market is holding on by its fingernails.

MM will get a bearish confirmation “sell signal” on a break under the trendline illustrated below for the NASDAQ.

US NASDAQ Index Chart

Investment of the week.

This week Aristocrat (ALL) just won over from Domino’s (DMP) for this slot primarily because were already long DMP. The risk / reward is great but we only see 10-15% upside, buy ALL with stops below $29.50 – almost a trade.

MM likes ALL for fresh all-time highs.

Aristocrat (ALL) Chart

Aristocrat Chart

Trade of the week.

I cannot remember the last time MM vaguely suggested  buying AMP but my “Gut Feel” is the times close.  On Friday AMP Capital  announced their funds had hit $200bn, a great result for this part of the business which now contributes 35% of the  groups earnings.  If these guys are  kicking goals and AMP’s other  disasters cannot get much worse it may just be  time for a small allocation back into this embattled diversified financial business.

MM likes AMP with stops below $1.66, potentially exciting risk / reward.

AMP Ltd  (AMP) Chart