Stocks are flying this morning as the tax overhaul approaches the finish line.
IBD50 watchlist stocks and select sector performers from the financial industry groups are set to “gap and go” this morning. Even beaten down FANG and technology stocks show signs of frenzied buying in the premarket. Banks are much higher as well, on the promise of a tax overall. If history is any guide, we could see stocks rising similar to that which followed the 1986 tax reform. What followed then was more than 10 years of bullish activity.
Summary
Financial Stocks – IBD50
ESNT is among several financial stocks from the IBD50 list set to run higher. The mortgage insurance company recently reported quarterly earnings that surprised Wall Street by 9.33%. Buyers are present in the wicks we see on Thursday and Friday, helping to push RSI higher. The wicks are our stop “zone.”
More than likely, ESNT will breakout. If financial stocks rally again this week. The building and construction group should move in tandem, so watch stocks like Chicago Bridge and Iron, Home Depot and US Gypsum.
Monster Beverage Corp. (MNST) report on November 11. Volume is over the top, signifying institutional interest. Price is rising along a very bullish SOTEMA.
Floor and Decor (FND) looks promising. The whole industry is on fire and will likely continue higher in the coming weeks. This stockwill break into an area where there is very little supply. This should lead to a quick spurt higher, so use your “Trade of the Day” setup (ToD).for entry, exit and stop.
MACD has crossed following a bullish move in price, where volume highlights signs of institutional interest. Look for a follow through this week. Target the 47.00 zone.
Watchlist – IBD50
Most of the stocks on the list are from the IBD50.
There are two quick links to additional industry groups at the bottom. Airlines and construction should do well.
We’ll be LIVE at 9:20 AM. See you then,
Vinny
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