The Top 10 stocks on the watchlist reflect the strength and persistence highlighted this morning as futures forge a path higher. These stocks continue to make new highs, despite several contrary indicators that are beginning to fail. TICK cumulative, as an example, has been dropping lately, despite the strength in stocks like those discussed herein.
Watchlist – Top 10 Stocks
These 10 stocks are ranked by percent change for the week. As the market trades ever higher, we did take some profits into strength. Positions are smaller going into the morning bell. Links will take you to stockcharts.
| SYMBOL | NAME | CLOSE | CHG | % CHG |
|---|---|---|---|---|
| ZLAB | ZLAB – Zai Lab, Ltd. | 51.74 | 12.22 | 30.92 |
| HOV | Hovnanian Enterprises, Inc. (HOV) | 26.07 | 5.23 | 25.10 |
| CGC | Canopy Growth Corp. (CGC) 2 | 24.90 | 4.77 | 23.70 |
| PINS | PINS – Daily Candlesticks, 900 | 21.76 | 2.04 | 10.34 |
| SPT | SPT – Sprout Social Inc | 19.11 | 1.67 | 9.58 |
| WGO | WGO – Winnebago Industries Inc. | 56.28 | 4.68 | 9.06 |
| BZH | BZH – Daily Candlesticks, 900 | 15.45 | 1.15 | 8.04 |
| PAGS | PAGS – PagSeguro Digital Ltd. | 36.93 | 2.39 | 6.92 |
| PODD | PODD – Insulet Corp. | 187.06 | 10.11 | 5.71 |
| AL | AL – Air Lease Corp. | 48.94 | 2.22 | 4.75 |
“Zai Lab Limited, (ZLAB) a Chinese biopharmaceutical company, engages in discovering or licensing, developing, and commercializing proprietary therapeutics that address medical needs in the fields of oncology, infectious, and autoimmune diseases in China and internationally.” – Yahoo Finance
The stock has been on a tear over the past 5 trading days, rising more than 30%. As we exceed targets, we would suggest taking more profits off the table again this morning. We’ll look for the next base to reassess progress and potential longevity.
Interested in finding stocks “before” they breakout? Join us here at TCP.
Hovnanian Enterprises (HOV) was noted for its potential last week after seeing strength in its competitors Lennar (LEN) and MI Homes (MHO).
We sold some of our position into strength yesterday while keeping options open for a test of the 29.50 (+/-) resistance zone. We’re also buying intraday dips for day trades as price action rises back to resistance on the hopes that RSI has yet to reach overbought territory.
Canopy Growth (CGC) has been discussed every day this week.
Cannabis stocks are being bought up at discounted prices, as such the whole group is on our radar. We plan to day trade and swing these positions as a new trend develops. Intraday dips will most likely be bought. As such, watch for ABCD Patterns for your best entry and stops.
One trait most of these Top 10 stocks have in common is industry group strength, where most of the other stocks in the group (competitors) are moving together. Adding the indices and sectors moving in a bullish direction completes the recipe for success.
Healthcare stocks broke out on Wednesday, so stocks like UnitedHealth (UNH), Merck (MRK), Eli Lilly (LLY), Mylan (MYL), Smile Direct (SDC) and AbbVie (ABBV) have been discussed as trades recently. Look for these candidates to continue higher.
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during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
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Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.
Disclosure: As an #ibdpartner, that means my use of investors business daily suite of services is complimentary. I also receive compensation from the company for my technical analysis services.