The watchlist highlights stocks from the IBD50, with many candidates in the technology and industrial sectors. Energy is strong in addition to the banks and transportation stocks. Many of the previous watchlist candidates are too extended from buy points.
Watchlist – IBD50
Technology is well represented this week. Software and semiconductors have been breaking out of base patterns, with measured moves indicated in the comments section.
Additional watchlist candidates are in the lower section, with particular attention to transports. Trucking and rails look the best, with a few exceptions in the airline group. Bulk shipping stocks are also moving higher, with the Baltic Dry Index breaking out of a nine-year (9) downtrend.
With so many setups, we decided to focus on the stocks in the IBD50 list that have not broken out of their base patterns to date. Stocks like AEIS, AMAT and FIVE, from the previous watchlist, are extended from their breakout points. Anticipate that these candidates will continue higher.
Real Estate – Coresite (COR)
CoreSite (COR) engages in the ownership, acquisition, construction, and management of data centers. The data centers are specialized and secure buildings that house networking, storage, and communications technology infrastructure, including servers, storage devices, switches, routers, and fiber optic transmission equipment.
Technically, the stock held at VBP support (dashed horizontal) with RSI suggesting higher prices, as the transition through the 9/20ema is complete. MACD and STO confirm the change of trend. With earnings on October 26, this swing position will likely head towards 120.00 in the short term.
Energy stocks also have more room to run. If small caps (IWM) show strength this week, the energy stocks we have been trading should continue higher. We’ll be discussing these candidates LIVE during the morning broadcast.
Happy Trading,
Vinny