There are many stocks on the watch list this week from the IBD50, Dow Industrials and Energy sectors. As we enter the 9th week without a pause in bullish momentum, futures are flat to start the session.
Most of the data presented in the weekend video news letter was bullish, with a few caveats to keep the bears hopeful. Overall, as we enter the seasonally best months of the year, rotation continues to be the theme. Follow the money.
The watch list and the IBD50
All of the stocks on the watch list are setup, with specific entry thoughts in the “Buy” column. Additional thoughts are in the comments section, outlining what we are looking for, with the market stating the 9th week without a pullback. We covered that in the weekend video.
Universal Display (OLED) rocketed to an all-time high Friday after the OLED display specialist posted much better-than-expected third-quarter results late Thursday.
Universal Display stock jumped 9.5% to close at 158.10 on the stock market today, retaking its 145.50 entry point and sprinting through the buy zone. In intraday trading Friday, it hit a record high of 160.95. – Source Investors Business Daily
Technically, I’d prefer and entry that pulls back into Friday’s price action, then met with buyers. MACD, RSI and volume all suggest higher.
A couple of weeks ago, Red Hat announced that it is teaming up with Alibaba Cloud to make its entire line of enterprise solutions available on the largest public cloud provider in China. While this is business-as-usual for Red Hat; its products are already available in the cloud in China — on Amazon Web Services and Microsoft Azure — and it has substantial presence throughout Asia Pacific markets.
Technically speaking, the stock is consolidating in a tight range, making ready for another substantial move. Watch RHT, as a move above current levels will catapult the stock to an area of no overhead supply. If that happens we are looking for 130.00, then 136.00, based on the previous breakout at the 108.00 zone and the run higher thereafter.
VEEV is forming a tight handle. A pop higher this week is anticipated. 66.01 is the first target.
While three stocks presented are highlighted, it is by no means the only three stocks we are monitoring, as the watch list illustrates. INTC, SHAK, WMT and WGO are positions we wouldn’t mind getting back into at some point.