It’s a seller’s market.
No institutional follow through coupled with a lack of leaders gives no confidence for the bull. Gotta stick to what is, not what should be. Without this evidence of large fund sponsorship any rally is suspect.
Smart and nimble money is looking to score on the short side. Odds may favor, as they often have before, stocks already trending bellow their major MA’s. These are the weakest in a weak market. One might look at Linkedin LNKD for its two-step rally back to 50-day for an invite.
Nothing hit our Standard Screen this week, except Vanda Pharmaceuticals, Inc., VNDA. This would be a decent buy setup if it weren’t for the lack of broader market buying power.
VNDA is the only stock from our screen still above its 50-day MA. Aggressive money can go ahead and buy this maker of drugs that treat schizophrenia. The 13 price mark looks like a good stop for a pre-breakout buy here. Nearly 150%+ sales growth with an ROE of 70% make this a tasty bid for funds. Any turn around in the broader market could make it a new leader.
Homebulders, with the ITB fund, still look poised as another candidate here.
This week’s scan has the >50 MDA criteria removed because VNDA is the only one that came in above it. What remains is a collection of the beaten and broken.
This screen is based on:
- EPS > 20% Quarterly
- Sales > 20% Quarterly
- ROE > 15%
- Price > 200 SDMA
- Price > 10
- Average volume > 300,000
- Market Cap > $300mil
| Ticker | Company | Industry | Country | Chart |
|---|---|---|---|---|
| ABMD | ABIOMED, Inc. | Medical Appliances & Equipment | USA | PB |
| ADPT | Adeptus Health Inc. | Hospitals | USA | N |
| AHS | AMN Healthcare Services Inc. | Specialized Health Services | USA | PB |
| AVGO | Avago Technologies Limited | Semiconductor – Broad Line | Singapore | N |
| GILD | Gilead Sciences Inc. | Biotechnology | USA | N |
| LAD | Lithia Motors Inc. | Auto Dealerships | USA | N |
| MMS | MAXIMUS, Inc. | Business Services | USA | N |
| NHTC | Natural Health Trends Corp. | Personal Products | USA | N |
| NVO | Novo Nordisk A/S | Drug Manufacturers – Other | Denmark | N |
| PLNT | Planet Fitness, Inc. | Sporting Activities | USA | N |
| REGN | Regeneron Pharmaceuticals, Inc. | Biotechnology | USA | N |
| SCMP | Sucampo Pharmaceuticals, Inc. | Drug Manufacturers – Other | USA | PB |
| SKX | Skechers USA Inc. | Textile – Apparel Footwear & Accessories | USA | PB |
| SNN | Smith & Nephew plc | Medical Appliances & Equipment | United Kingdom | L-BASE |
| TREE | LendingTree, Inc. | Mortgage Investment | USA | N |
| UVE | Universal Insurance Holdings Inc. | Property & Casualty Insurance | USA | N |
| VC | Visteon Corporation | Auto Parts | USA | N |
| VNDA | Vanda Pharmaceuticals, Inc. | Biotechnology | USA | L-BASE |
| WBA | Walgreens Boots Alliance, Inc. | Drug Stores | USA | N |
| WD | Walker & Dunlop, Inc. | Mortgage Investment | USA | N
|
- BASE = Base
- L-BASE = Lower Base
- PB = Pullback
- NH = New High
- N = Nada