The watch list for the week highlights seven winning stock picks, that we will trade “LIVE” during the daily internet radio broadcast. These candidates exhibit characteristics found in setups that have shown to go on to substantial gains in the short term.
In addition, many of them are higher in pre-market trading, so it is important not to chase them. Use the Trade of the Day “ToD” setup, for initial entries, exits and stops. Swing your position if the candidate closes near the top of the daily range and take partial profits if your strategy dictates it would be prudent to do so.
Edwards Lifesciences (EW) is from previous watch lists. Some of you may still be holding this stock in your portfolio. If this is a new position, look for a bullish healthcare (XLV) sector for confirmation before entering.
The recent pullback was bought, so we know buyers support the stock. SOTEMA is bullish. There is no overhead supply at these levels. A measured move (MM) based on the depth of the rectangle is approximately five (5) points, giving us a target of 123.80. Use the breakout level (top horizontal line) in your calculation. Stop using the ToD setup.
Facebook is higher in pre-market trading. Use the Trade of the Day setup. RSI and MACD suggest momentum will continue to support a breakout and higher prices. There is no overhead supply at these levels. Volume by Price (VBP) is major support just below price at 154.00 (+/-).
LITE should move higher today with AAOI and CIEN. This telecom industry group (fiber-optic) has seen continuous attention from the bulls lately. Volume suggests continued interest.
Semiconductors and MTSI look bullish. We are looking for a quick move higher with targets back into the top of the recent range.
TRU is in the specialty finance industry group. It did not experience weakness last week, relative to that of the banks. If financials are strong, this one should continue higher. RSI suggests room to grow. Volume indicates institutions are present. SOTEMA is bullish.
TTM Technologies shrugged off the Goldman Sachs downgrade two weeks ago that affected the “FANG” stocks as well as most technology related candidates. While TTMI isn’t a big mover, we like the shallow cup with handle pattern for a breakout this week.
VEEV is a Trade of the Day setup. Targets are top of the recent range.
Watch which sectors remain strong during regular market hours today. Focus on stocks in these sectors and industry groups therein, to add a level of confirmation and increase your probabilities using the “Top Down Approach”.