The watch list of winning stock picks is out for this week. Most of these stocks have the criteria we look for when considering new long positions using a top-down approach to selection.
Summary
Watch List for August 20
With futures pointing to a green open this morning, candidates on the watch list should respond according to plan. Use the Trade of the Day (ToD) Setup for entry. Use flags during the day for initial stops. If the indices stay bullish, consider profits on new positions if they close near the highs of the session. Swing 1/4 or 1/2 if conditions permit.
FOXF is trading post earnings, with oscillators returning to bullish momentum. MACD should continue turning higher this week if price action produces bullish follow through days. An increase in volume would confirm the trade.
The company reported a beat of 8.33% on August 3, exceeding analysts estimates by 0.03. (0.39 actual vs. 0.36 estimated)
MDXG and Medical Devices
Medical device makers were one of the few bullish industry groups last week. If we see a repeat MDXG should respond favorably by pushing off of the moving averages. SOTEMA is beginning to show a bullish trajectory.
YY Earnings Beat
The Chinese social media platform provider announced it would make a secondary offering of 5.75 million depositary shares, seeking to leverage the rise in its stock which nearly doubled since mid-April. The company taps into the demand for live-streamed videos, taking a cut of payments from viewers and broadcasters. Despite the potential dilution that will result from the offering, the pullback in YY stock only reversed a small portion of its recent gains.
The company beat analysts estimates on August 10 by a decent margin of 14.18%.
Additional stocks we’ve traded recently worth watching today; AABA AAPL ADBE AMD AMZN BABA BZUN
If the markets bounce as we discussed in the weekend video newsletter, the winning stock picks on the watch list should work favorably.
Happy Monday
Vinny
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