Futures are higher on prospects of a government shutdown being averted?
More likely futures are higher, over a combination of factors, with some markets closed today. In addition, more than 77% of S&P 500 companies have reported earnings to date. Wall Street reports a rise of 13.6 percent in the first quarter, the most since 2011.
Many of the stocks that have graced the IBD50 over the month of April continue to rise. Many are in bases, with potential breakouts after earnings are reported. Half of the stocks on the watch list report earnings this week or next, so we’ll focus on short term setups with these candidates.
ATHM is indicating a possible flag, as RSI takes a respite. MACD shows momentum still belongs to the bulls. VBP support is just below price.
We’ll look to the TD setup for entry, with a stop if price action breaks below the 9/20ema on the 5 minute time frame. If we close near or at the high of the day, consider a swing. The company does not report until the end of May (5/31).
VEEV will most likely grind higher, if XLK remains strong this week. MACD crossed on Wednesday, so the ball is in the bulls court. Bollinger Bands are expanding on a recent breakout of the current pattern.
The cloud based provider of software based sales support services reports at the end of May. (5/24)
Danone operates as a food company worldwide. Its Fresh Dairy Products division produces and markets yogurts, fermented fresh dairy products, and specialized dairy products under well known brand names.
The stock popped on the “9/20ema cross” scan, as it trades post-EPS. RSI is rising and price is pushing into the Kirby. Use the 5 minute TD setup for initial entry and stops. Support is just below, along the dashed horizontal, volume by price zone. Your stop is just below this level.
The sector heat map is progressing towards yellow and green, as we mentioned in the weekend video newsletter. We are anticipating that this trend will continue, as earnings are better than expected.
The strongest sectors……
The healthcare industry, biotech and medical devices continue to perform the best. Technology stocks are riding higher on Amazon and Google earnings, while the semiconductor industry group ended the week with some profit taking. INTC earnings didn’t help.
Here is the watch list for reference.
We’ll review more stocks from the watch list and 9/20ema scan in the pre-market show. Grab your coffee/tea and I’ll see you at 9:00 AM..