IBD50 Stocks and The Markets
Many of the IBD50 stocks have held up very well, during the recent market volatility. In particular, two names are primed for higher prices as this industry group continues to perform.
Considering the non-farm payroll numbers and jobless claims at 50-year lows, it appears consumers will be the catalyst for a potential bullish run in the consumer discretionary sector. If consumers spend, SQ and PYPL should benefit.
Square (SQ) is breaking out to 52-week highs, which usually leads to higher levels as the stock trades in an area of no supply. MACD is above its signal line and volume shows institutions are active, We will use the Trade of the Day setup to add or start new swings.
PayPal (PYPL) has been on the IBD50 for months. The stock saw a lot of activity yesterday on above-average volume. This “pocket pivot” a term coined by William O’Neil, elevates volume above the previous 10 days bearish volume by comparison. Look for follow through on this thrust with targets at recent highs when pocket pivots appear.
Institutions have been actively buying PayPal shares and Cramer mentioned the stock last night, with a CEO question-answer session to boot.
We will use the Trade of the Day setup to add or start new swings.
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