Leaderboard and IBD50 Watch List Candidates Remain in a Strong Uptrend
The Watch List for the week has several leaders worth mentioning, as most stocks from our weekly list closed higher. Tuesday was a good trading day. Nasdaq 100 outperformed, rising 1.04%. We commented intraday that 70 to 80 of the stocks on the NDX100 were green most of the day, with only 20 to 30 red as stocks rose.
Etsy was on the Leaderboard list for the past couple of weeks. The stock rose 6.43% from its intraday low early in the session to finish up 4.68%. We bought the covered calls back at the lows.
It’s now extended from the 45.98 buy point. Etsy held support at its ascending weekly 9ema. We remain long the shares and will sell covered calls again soon.
Roku shares have risen 8.80% in the past two days, closing higher on Tuesday by 3.30%. More upgrades with $ROKU PT raised to $72 from $50 at Citi. They are keeping a Neutral rating.
“Shares surged more than 3% after KeyBanc maintained an overweight rating and lifted its price target to 81 from 67, according to Benzinga. Roku is already more than 20% above its conventional entry at 51.92, an area where stocks tend to start new consolidations. Roku was added to Leaderboard around the time it cleared an alternate entry of 60.75.” – Source Leaderboard
The cable cutter TV streaming platform and player provider popped 5% in above-average volume on comments from William Blair and Needham both of whom noted that Roku has a distinct advantage over its competition.
“Roku offers better targeting than linear TV companies while also allowing advertising to use their existing 30-second ads on its platform.” – Needham
Meanwhile, new highs and 52-week highs continue to populate our watch list. Numerous IBD50 and MarketSmith Growth 250 stocks have broken higher in the past couple of weeks. Few have fallen back into their previous bases. On Monday 319 stocks traded higher on above-average volume. Tuesday that number was 260.
This type of action can only happen when markets are bullish.
“What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.” – William O’Neil
We are looking for the first sign of failing breakouts. Only then will we turn short-term bearish.
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Happy Trading,
Vinny
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