The IBD50 and watchlist of Winning Stock Picks continue higher, so a steady as she goes mantra makes sense. Keep moving your stops higher and consider taking partial profits along the way. With the markets up for the sixth week straight, the potential for a flag or fade from the highs increases. The last 6-week run was in February. A small drawdown followed in March.
Watch List – IBD50
Out of 15 stocks on the watch list, only one failed to break higher yesterday. MDSO may get moving today, so don’t count it out. Sometimes previous watch list candidates get moving a week or two later. WGO as an example may pick up today.
YY followed through in spectacular fashion. Targets are 98 and 100 short term. We started scaling out into yesterdays runup. We will do the same again today, while MACD remains inclined and above its signal line.
JP broke out of its flag yesterday. This is a short-term swing. We will exit this position today, scaling out 1/2 on the morning pop. The intensity suggests speculation, so we will ride a small trailer along with the crowd.
Watch the 5 min chart for a place to exit. A close below the 20ema would have me looking for an “ABCD” pattern, with “B: as a stop going into the close. I’ll talk about it LIVE, so be sure to tune in after 9:20 this morning.
NVDA started its move this week, following through after a dip yesterday. Earnings are just around the corner, so a run higher appears to be just what the doctor ordered (Dr. Pete) in the trading room.
Note the depth of pattern gives us an approximated measured move of +20 points, so 211.00 (+/-) seems doable prior to earnings. MACD is in full momentum mode now.
We’ll talk more as the day unfolds, so if you’re able to tune into the Live broadcast, check us out after 9:20 AM.
Happy Tuesday,
Vinny