The watchlist for the week and homebuilder stocks are bullish. Follow through days have been lucrative as we have been selling the morning session highs and buying back those trending stocks later in the day, for the most part., if they show relative strength versus the market. Criteria for entry, the 21d Strategy.
Consumer Discretionary Stocks
The consumer discretionary sector broke out to new highs on Tuesday, while the weekly remains in a bullish channel.
Homebuilders and home improvement stocks are a sub-industry group showing relative strength.
Home Improvement stocks, LOW and HD are bullish. The latter broke out to new highs while LOW appears ready to follow suit.
Online retailers and dropship companies are positioned in the consumer discretionary sector as well. Canadian powerhouse Shopify (SHOP), is trading higher in the pre-market session on an earnings beat, so we would watch SFIX and ETSY for similar interest today. We are specifically looking for high RVOL in either of these names.
Alternative Energy Stocks
Energy stocks showed some relative strength as well, with the alternative energy stocks posting some interesting gains worth watching. For example, some solar stocks moved higher; watch CSIQ and SPWR.
Sunpower appears to be tracing out the right side of a cup and handle pattern. The top of the cup or recent highs (15.57) would be a reasonable target over the coming weeks, as the 9ema is above the bullish 21d. MACD and RSI are confirming.
SPWR shows a 21d about to cross over the 200ema in this bullish drive. Canadian Solar (CSIQ) printed a big bullish candle yesterday.
Real Estate Stocks – REITs
There are several interesting sub-groups to choose from; specialty, industrial / office, hotel, residential, mortgage, and diversified REITs. All of these show promising patterns that you can check out here.
City Office REIT (CIO) appears ready to breakout to fresh 52-week highs. Price action is above the 9ema and 21d. Add on pullbacks to either of these that hold, where buyers return and confirm.
MACD has crossed back above its bullish signal line. RSI is above 50 and rising. Confirm new entries with RVOL greater than 2.0.
Telecom Stocks – 5G
Inseego (INSG) is back on our radar. volume is increasing as the stock builds a base and catapults higher off recent pivot lows. Check the weekly as well.
Watch for a flag first thing in the morning. We’d like to take INSG for another ride and/or add. Stop under the low of the day.
Top 10 Watchlist Stocks
The watchlist is fairing well. These are the winners for the week.
All of the stocks covered herein have a few things in common. You can read about these criteria here, the 21d Strategy.
Futures, crude, and yields are higher. Gold is lower.
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Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.