The market indices, S&P500 in particular, have seen incredible resilience as buyers converged at the 9ema daily moving average on Thursday. Futures are bullish and scans produced many stocks exhibiting bullish action. Even Skyworks (SWKS), which beat earnings is currently lower in pre-market action. These stocks will likely see follow-through in the short-term.
Daily Scan – Skyworks (SWKS)
- Skyworks (SWKS), is a leading provider of next-generation (5G) RF chips. The pullback is giving us an opportunity, Watch for this temporary weakness to the 9ema to hold fast and attract buyers. If the 9ema is lost watch the 21d for interested parties. No hurry.
Skyworks (SWKS) price action pre-market is near support. Watch for evidence of buying activity.
Additional candidates. Note transports, as the rails rally.
| SYMBOL | NAME | CLOSE | CHG | % CHG | +/- |
|---|---|---|---|---|---|
| NFLX | NFLX – Netflix, Inc. | 349.60 | 23.60 | 7.24 | |
| DT | DT – Dynatrace Inc. | 27.88 | 1.79 | 6.86 | |
| EPZM | EPZM – Epizyme, Inc. | 26.72 | 1.21 | 4.74 | |
| CREE | CREE – Cree, Inc. | 53.91 | 1.88 | 3.60 | |
| UNP | UNP – Union Pacific Corp. | 187.19 | 6.26 | 3.46 | |
| WDC | WDC – Western Digital Corp. | 70.93 | 2.29 | 3.34 | |
| NSC | NSC – Norfolk Southern Corp. | 208.61 | 5.47 | 2.69 | |
| SWKS | SWKS – Skyworks Solutions Inc. | 128.19 | 3.29 | 2.63 | |
| PYPL | PYPL – PayPal Holdings, Inc. | 117.89 | 2.39 | 2.07 | |
| TEL | TEL – TE Connectivity Ltd. | 100.37 | 1.42 | 1.44 | |
| DDOG | DDOG – Datadog Inc. | 42.81 | 0.57 | 1.35 | |
| KSU | KSU – Kansas City Southern Corp. | 166.73 | 1.92 | 1.16 | |
| WAB | WAB – Wabtec | 79.98 | 0.87 | 1.10 | |
| LMT | LMT – Lockheed Martin Corp. | 428.78 | 4.36 | 1.03 | |
| OKE | OKE – Oneok, Inc. | 76.29 | 0.69 | 0.91 | |
| CDNS | CDNS – Cadence Design Systems, Inc. | 75.42 | 0.62 | 0.83 |
Finally, we will continue to reduce positions into strength as euphoria persists. While we cannot call a top, we can reduce risk and focus on the stocks that are in play.
NFLX and AVGO were examples on Thursday. RVOL was above 2.0. People will most likely chase NFLX and get stuck. We’ll sell into strength today.
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Happy Trading,
Vinny
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