With the relative strength in the US markets, these watchlist candidates performed the best. We are looking for these stocks to conue the performace seen on Monday, if the indices follow through on Tuesday. Industrials, transports, travel and leisure and financials are performing as expected. Considering the strength in the 10 year yield, momentum in financials will likely continue.
Summary
Watchlist – Top 10 Candidates
| SYMBOL | NAME | SECTOR | CHG | % CHG | VOLUME |
|---|---|---|---|---|---|
| NLS | NLS – Nautilus Group, Inc. | Discretionary | 1.74 | 8.85 | 2236646 |
| AMRS | AMRS – Amyris Inc. | Materials | 1.69 | 8.18 | 6521377 |
| SMG | SMG – Scotts Co. Cl A | Materials | 10.44 | 4.67 | 435533 |
| LPX | LPX – Louisiana Pacific Corp. | Industrial | 2.06 | 3.93 | 1418309 |
| MX | MX – MagnaChip Semiconductor Corp. | Technology | 0.88 | 3.78 | 1477772 |
| SQ | SQ – Square, Inc. | Technology | 9.12 | 3.77 | 8862867 |
| WBA | WBA – Walgreens Boots Alliance, Inc. | Staples | 1.84 | 3.46 | 9190509 |
| SNBR | SNBR – Sleep Number Corporation | Discretionary | 4.74 | 3.33 | 461353 |
| NKE | NKE – Nike Inc. | Discretionary | 4.49 | 3.20 | 5410358 |
| GNRC | GNRC – Generac Holdings Inc. | Industrial | 8.81 | 2.68 | 1101915 |
Square, Inc.
Fin-tech companies, Square (SQ) and PayPal (PYPL) have outperformed traditional payment companies this year. Innovation and earnings growth being the differentiating factors. In addition, Square began new ventures in industrial banking.
Technically speaking, price action reversed back above the 9/21/50d moving averages last last week. MACD is forming a bullish crosss. together with renewed strength in RSI, which moved back above the 50 zone. Stochastic is rising. Volume is above average signaling the presence of institutions.
Scott’s Miracle Grow (SMG)
Scotts Miracle-Gro (SMG) saw its IBD SmartSelect Composite Rating jump to 96 Monday.
The new rating is a sign the stock is outpacing 96% of all stocks in its industry group. The top-performing stocks tend to have a 95 or better grade as they kick off a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
Techical indicators, RSI, MACD (bullish cross) and stochastic are rising. Price action is back above the 9/21/50d moving averages. We consider entries using ABCD patterns or the opening range breakout on high RVOL.
Lousiiana Pacific (LRX) has been on a tear since breaking out in February. Volume is above average, a sure sign institutions are adding to positions. Price action is trending. New enteries will be considered on pullbacks to the rising 9/21d moving averages.
Futures are highwer this morning, with the S&P 500 printing new highs this week.
Join us today in the trading room for our LIVESTREAM broadcast 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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