The watch list and stock picks for this week have been sent out via email and uploaded to the watch list channel in the trading room. In addition, the utilities sector has numerous candidates showing continuation patterns ripe for higher prices. IBD 50 stocks show fewer setups, as many stocks are pulling back to support.
Watch List for the Week
The indices are trading near all time highs, so it should be no surprise that traders are reluctant to put on new positions. As a result, we have fewer winning stock picks this week. We, like many others are holding steady while the market signals its next direction.
CELG is higher in pre-market trading. We are looking for continuation of the current trend into earnings on 07/27.
CGNX looks ready to continue higher into earnings next Monday, 07/31. With RSI and MACD rising, this could run above VBP resistance very quickly. SInce earnings are next week, this will be a short term swing. Use the Trade of the Day (ToD) setup for entries, stops and exits.
CIEN is breaking out of a descending wedge and part of a larger cup pattern. While the wedge is a bit large for a handle, it does show similar characteristics, in that sellers still persist. This one has been lagging AAOI and LITE, all of which run in the same industry group, telecom and fiber. Watch these competitors when trading CIEN.
RSI and MACD suggest bulls are in control. Price is above the 9/20ema and VBP.
ICHR reports this week, so any trades would be short term, with an exit before Friday. The stock is pulling back to the 9ema, so buyers should should up to confirm.
LAZ reports on Friday as well, so it could take out this double top this week. It is trading in an area of no supply. Use the ToD setup for entry, stop and exit.
LULU shows potential as a continuation pattern. More than likely it will forge a path higher, reporting at the end of August. The company has pretty decent IBD numbers, considering its in the retail industry group. A pullback to the 9ema would be a gift, otherwise use the ToD setup this morning to guage whether buyers are still present.
A couple of Utility Sector (XLU) stocks, that have yet to blast higher, are on our radar. Watch WTR, CNP and AEP as potential candidates, if XLU is strong today.
Trading higher pre-market: AMD, AMZN, ATVI, BABA, CELG, FB, FND, FDX, GOOGL, MOMO, NVDA, TSLA, TWTR, VALE.
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