The watch list highlights four IBD50 stocks with potential.
The IBD50 List is peppered with stocks trading post earnings and ready to follow through. Four of these candidates have the best potential for appreciation in the coming weeks.
BGC Partners Inc is a brokerage company servicing the wholesale financial and real estate markets. Some of its products include fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, and structured products.
The company reported earnings that beat estimates. Revenue grew 28.5% on a year-over-year basis. The company said it expects fourth-quarter revenue of $800.0 million to $850.0 million. The current consensus revenue estimate is $847.1 million, so management is being conservative.
Technically speaking, the stock broke it’s recent downtrend and consolidation pattern. RSI is rising, as price induced a MACD cross last week. Bollinger Bands are fairly tight, so any change in volatility should show up soon.
FIVE will report Thursday a week from now, so this would be a short-term swing. Use your Trade of the Day (ToD) setup to gauge your entry, stops, and exits.
Bollinger Bands are beginning to expand, top and bottom, signaling a fast move. With price above the inclining 9/20ema and MACD above its signal line, it appears bulls are in control.
Winnebago is showing tight Bollinger Bands opening recently, as price glides along the upper band. With RSI rising, and MACD turning, the two suggest the resulting move will be higher. Any increase in price from this point pushes into a zone of no overhead supply. THO and WGO are trending together. Watch both of them if you consider an entry on WGO this week.
MSCI will likely continue its current momentum this week, that is if the financial sector remains strong. Last week began with a potential bounce off the 50ma for many stocks in this group.
The NYSE New Highs New Lows oscillator is turning bullish, as fewer stocks make new lows, compared to stocks making new highs. This is an important change of character as breadth begins to turn bullish. Pay particular attention to the moving average (black line.)
NYAD, NYMO, and NYHL are all changing direction. If this continues, we will begin the process of increasing our position size. Just 5 weeks ago, we saw these indicators tell us to reduce position size and take profits.
Additional stocks worth watching today. AMAT MU BABA CELG BBBY CMG YUM FIZZ URBN
We will be LIVE to discuss our thoughts around 9:20 AM.
Happy Monday,
Vinny