IBD50 stocks are moving higher this morning, with futures pointing to a bullish gap above Friday’s block trades (247.12). Those traders will be forced to cover their positions this morning. Bullish above these block trades, bearish below.
IBD50 Stocks on the Watch List
All of the IBD50 stocks on the watch list have similar attributes. RSI is rising, with MACD above its signal line. In most cases, we see pattern break outs, which should lead to continuation today. Use your Trade of the Day (ToD) setup for entry and initial stops.
The attributes we are looking for are 1) price above the 9/20ema with 2) the moving averages rising (SOTEMA) and 3) RSI pointing towards 70. A bullish MACD cross would be a plus, with bulls firmly in control of the momentum.
Additionally, we like to see VBP support just below the break out zone, which gives us a cushion on new entries. Any break higher this week affords an opportunity to start a new position or add to existing positions.
Note: the above cover the technical attributes. The fundamentals are baked into the IBD50 stocks, which add to our probabilities of success.
IBD50 Stocks Previously Mentioned
Also, keep an eye of previous watch list candidates as many are showing bullish tendencies this morning. The FANG stocks and many technology related stocks are markedly higher, as they rebound from Friday’s late sell-off.
Watching: AABA AAPL AMAT AMD ARRY BABA BZUN FB MOMO NFLX NVDA TSLA YY
As with any gap in futures, watch for a fade. Up down volume is paramount; we need to see green indicators in the bulls column. If market internals, tick cumulative and up down volume, fails to maintain sustained strength, a pullback from the high of the day will likely follow.
We’ll be LIVE at 9:20 AM this morning.
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