Three Candidates

Looking back at the bullish trend that started the first week of November and the more recent drawdown of (-4% +) we continue watching institutions as they position themselves going into the February OPEX. For now, 3800 – 3825 remains support, and volatility trigger at 3740.00.  IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, the start of February has the Dow Jones Industrial Average, Nasdaq and S&P 500 trying to find support near key levels during last weeks drawdown.

The Trade Desk (TTD)

Institutions are adding.

The Trade Desk, Inc. a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns in various advertising formats, including display, video, audio, native and social, and on various devices, such as computers, mobile devices, and connected TV. It also provides data and other value-added services, as well as platform features. The company serves advertising agencies and other service providers for advertisers. 

Trade Desk (TTD) shows a rising “RS” line as the stock is setting up for a breakout. Momentum indicators (not shown). MACD, stochastic and RSI are bullish.

Earnings are schedule for the end of February.

ETSY

Funds are adding.

Etsy, Inc. operates online market places for buyers and sellers primarily in the United States, the United Kingdom, Canada, Australia, France, and Germany. Its online market places include Etsy.com and Reverb.com. The company offers approximately 66 million items in its various retail categories to buyers. 

ETSY price action is above it’s bullish 9/21/50d moving averages with “RS” Line rising to (94).  Earnings and sales are growing consistently, every year, left panel. IBD metrics are bullish as the company heads into earnings scheduled for the end of February. MACD, stochastic and RSI (not shown) are bullish.

Beazer Homes (BZH)

We wrote about potential trades two weeks ago, as KB Home (KBH) reported earnings, looking for bullish candidates in the homebuilding group. Both stocks are consolidating recent gains, with Beazer is ready to follow through after finding support and buyers at its bullish 9/21d moving averages.

Funds are adding.

Beazer Homes USA, Inc. (BZH) operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Delaware, Indiana, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina.

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Happy Trading,

Vinny

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