Quiet Riot

BUYER’S EDGE

Sector rotation still in effect as technology names see some institutional selling. The election may be loudly contested, yet the market stayed mostly subdued.

INDEXWEEKCLOSECHANGE% CHANGEYTD %
DJIA29263.48-216.33-0.72.5
Nasdaq11854.9725.680.232.1
S&P 5003557.54-27.61-0.810.1
Russell 20001785.3441.302.47.0
Weekly Advancing/Declining Volume NYSE: 1.6, NASDAQ: 2.1 
Accumulation/Distribution Count, 20 DaysS&P 500: 4/3, NASDAQ: 5/5  
Weekly Advances/Declines, IssuesNYSE: 2.7, NASDAQ: 2.2  
New HighsNYSE:   377 (-13%), NASDAQ: 492  (-11%)
New LowsNYSE:  25 (-38%), NASDAQ: 54 (-19%)
SYMBOLNAME% CHG40EMACHART
XLEENERGY5.7Second week of rallying brings it to the 40EMA, but still a downtrend.
XLBMATERIALS1.09Pullback from new high last week. 
XLIINDUSTRIAL1.05Inches up to new high for second week in a row. 
XLFFINANCIAL0.55Convincingly above 40EMA, 15% off high. 
XLYCONSUMER DISC0.16Pullback from new high last week. 
XLCCOMMUNICATIONS SRVCS-0.36Pullback in handle of 10-week base.
XLKTECHNOLOGY-0.9Pullback in handle of 10-week base.
XLREREAL ESTATE-1.52Pullback in handle of 9-mo. base.
XLPCONSUMER STAPLES-1.53Fades from new high. 
XLVHEALTH CARE-2.96Pullback from new high last week. 
XLUUTILITIES-3.86Pullback in handle of 9-mo. base.

WHAT’S GOING ON

 Big Tech leadership continues to fade. 

  • Apple (AAPL, -1.61%), 
  • Microsoft (MSFT, -2.57%), and 
  • Facebook (FB, -2.62%) have narrowed their +two-month ranges. 
  • Alphabet (GOOG, -1.96%) bucked the trend as it hit a new high.  

Key Industry Action

  • Three-year base breakout in resorts and casinos, apparel manufacturers, apparel stores, personal services, drug manufacturers.
  • Home furnishings, medical devices new high.
  • Business services breakout.
  • Security and Protection, RV’s, beverages in cup and handle.
  • Luxury goods, right side of base.
  • Copper new high.
  • Medical distribution base breakout.

GSRTRADES

These are the stocks in breakout mode that meet the strict criteria for Growth Stock Trades.

These top names are leadership and will help determine the success of others on our Bases and Lower Bases lists. Strong representation from biotech, cloud computing, stay at home, work at home, software and online retail. 

BREAKOUTS & PULLBACKS

TickerCompany NameTIERDEMANDIndustry
AAXNAxon Enterprise Inc4X++Aerospace & Defense
APPSDigital Turbine, Inc.3P++Internet Software/Services
AVLRAvalara Inc4X++Packaged Software
BERYBerry Global Group Inc4P+Containers/Packaging
BLFSBioLife Solutions, Inc.4X++Medical Specialties
BPMCBlueprint Medicines Corp.1P+Biotechnology
CDNACareDx, Inc.4X++Medical Specialties
CELHCelsius Holdings, Inc.1P++Beverages: Non-Alcoholic
CGCCanopy Growth Corporation3P++Agricultural Commodities/Milling
COWNCowen Inc Class A3P+Investment Banks/Brokers
CRDFCardiff Oncology, Inc.3X++Medical/Nursing Services
EXASExact Sciences Corporation1X++Biotechnology
FATEFate Therapeutics, Inc.1X++Biotechnology
FIVNFive9, Inc.4X++Information Technology Services
FOLDAmicus Therapeutics, Inc.4X++Biotechnology
FRHCFreedom Holding Corp.3P++Investment Banks/Brokers
FRPTFreshpet Inc4P++Food: Specialty/Candy
FSLRFirst Solar, Inc.4P+Electronic Components
FTCHFarfetch Limited Class A2X++Internet Software/Services
FUBOfuboTV Inc.1X++Movies/Entertainment
FUVArcimoto, Inc.1X++Motor Vehicles
GRBKGreen Brick Partners, Inc.4P++Homebuilding
GRWGGrowGeneration Corp.1P++Wholesale Distributors
HIHillenbrand, Inc.4XIndustrial Conglomerates
HTHHilltop Holdings Inc.4PRegional Banks
HUBSHubSpot, Inc.4X++Information Technology Services
IIPRInnovative Industrial Properties Inc1P++Real Estate Investment Trusts
IIVIII-VI Incorporated1X++Electronic Equipment/Instruments
IPHIInphi Corporation3X++Semiconductors
IRIngersoll Rand Inc.3X+Industrial Machinery
LOBLive Oak Bancshares, Inc.3P++Regional Banks
MELIMercadoLibre, Inc.3X++Internet Software/Services
MGNIMagnite, Inc.4X+Advertising/Marketing Services
MRNAModerna, Inc.1X++Biotechnology
MRTXMirati Therapeutics Inc.1X++Biotechnology
NETCloudflare Inc Class A4X++Information Technology Services
NOVASunnova Energy International Inc4X++Wholesale Distributors
NTLAIntellia Therapeutics, Inc.3X++Biotechnology
NTRNutrien Ltd.1PChemicals: Agricultural
NTRANatera, Inc.4X++Medical/Nursing Services
OCULOcular Therapeutix Inc1X++Pharmaceuticals: Major
OSBNorbord Inc.4P+Forest Products
PLANAnaplan, Inc.4X+Packaged Software
PLUGPlug Power Inc.3X++Electronic Components
QTWOQ2 Holdings, Inc.4X+Information Technology Services
RAREUltragenyx Pharmaceutical, Inc.1X++Biotechnology
RGENRepligen Corporation4P++Pharmaceuticals: Major
ROKURoku, Inc. Class A4X+Electronics/Appliances
RPDRapid7 Inc.4X+Information Technology Services
SBGISinclair Broadcast Group, Inc. Class A4XBroadcasting
SNAPSnap, Inc. Class A4X++Internet Software/Services
SQSquare, Inc. Class A1P++Information Technology Services
STNEStoneCo Ltd. Class A4P+Packaged Software
SWAVShockwave Medical, Inc.2X++Medical Specialties
TERTeradyne, Inc.4P+Electronic Production Equipment
TRUPTrupanion, Inc.4X++Specialty Insurance
TWSTTwist Bioscience Corp.4X++Biotechnology
ZZillow Group, Inc. Class C2X++Information Technology Services

Keep your profits,

Dan

GSRTrades November 15, 2020

BASES

TickerCompany NameTIERDemandIndustry
BMYBristol-Myers Squibb Company3X+Pharmaceuticals: Major
CNCCentene Corporation4P+Managed Health Care
COOPMr. Cooper Group, Inc.4P++Finance/Rental/Leasing
FVRRFiverr International Ltd.3X++Data Processing Services
GPNGlobal Payments Inc.2PData Processing Services
MRNAModerna, Inc.1X++Biotechnology
NTRNutrien Ltd.1PChemicals: Agricultural
PGNYProgyny, Inc.4P+Miscellaneous Commercial Services
PLANAnaplan, Inc.4X+Packaged Software
RDS.ARoyal Dutch Shell Plc Sponsored ADR Class A4PIntegrated Oil
SINASINA Corp.4PInternet Software/Services
WBWeibo Corp Sponsored ADR Class A2PInternet Software/Services
XPERXperi Holding Corporation3XSemiconductors

LOWER BASES

TickerCompany NameTIERDemandIndustry
ACLSAxcelis Technologies, Inc.4PElectronic Production Equipment
AGNCAGNC Investment Corp.1XReal Estate Investment Trusts
ALNYAlnylam Pharmaceuticals, Inc1X++Biotechnology
AMDAdvanced Micro Devices, Inc.4P++Semiconductors
AMZNAmazon.com, Inc.4P++Internet Retail
APPSDigital Turbine, Inc.3P++Internet Software/Services
AXNXAxonics Modulation Technologies, Inc.1X++Medical Specialties
AYXAlteryx, Inc. Class A4X+Packaged Software
BAMBrookfield Asset Management Inc. Class A2PInvestment Managers
CHGGChegg, Inc.4X++Miscellaneous Commercial Services
CHWYChewy, Inc. Class A4X++Internet Retail
CNQCanadian Natural Resources Limited4POil & Gas Production
CODXCo-Diagnostics, Inc.1P++Biotechnology
COUPCoupa Software, Inc.4X++Packaged Software
CRMsalesforce.com, inc.4P++Packaged Software
CRWDCrowdStrike Holdings, Inc. Class A1X++Packaged Software
CVNACarvana Co. Class A4X++Specialty Stores
DDOGDatadog Inc Class A2P++Packaged Software
DOCUDocuSign, Inc.4X++Packaged Software
DTDynatrace, Inc.4P++Packaged Software
EDITEditas Medicine, Inc.1X++Biotechnology
ESPREsperion Therapeutics, Inc.3XBiotechnology
ETSYEtsy, Inc.1P++Miscellaneous Commercial Services
EXPIeXp World Holdings, Inc.3P++Financial Conglomerates
FLGTFulgent Genetics, Inc.1P++Medical/Nursing Services
FLWS1-800-FLOWERS.COM, Inc. Class A4P++Internet Retail
FSLYFastly, Inc. Class A4X++Information Technology Services
GRUBGrubhub, Inc.4X++Specialty Stores
HZNPHorizon Therapeutics Public Limited Company3P++Pharmaceuticals: Other
KPTIKaryopharm Therapeutics, Inc.2X+Biotechnology
MPWMedical Properties Trust, Inc.4PReal Estate Investment Trusts
NLSNautilus Inc3P++Recreational Products
NVAXNovavax, Inc.1X++Biotechnology
NVDANVIDIA Corporation4P++Semiconductors
OSTKOverstock.com, Inc.3P++Internet Retail
PBAPembina Pipeline Corporation4POil & Gas Pipelines
PRPLPurple Innovation, Inc.4X++Miscellaneous
PTONPeloton Interactive, Inc. Class A1P++Other Consumer Services
QDELQuidel Corporation1P++Medical Specialties
RNGRingCentral, Inc. Class A4X++Packaged Software
ROKURoku, Inc. Class A4X++Electronics/Appliances
RPAYRepay Holdings Corp. Class A4X++Miscellaneous Commercial Services
SGENSeagen, Inc.1P++Biotechnology
SHOPShopify, Inc. Class A3P++Internet Retail
SPWHSportsman's Warehouse Holdings, Inc.3P++Specialty Stores
SWBISmith & Wesson Brands, Inc.3X++Aerospace & Defense
TBIOTranslate Bio, Inc.1X++Biotechnology
TDOCTeladoc Health, Inc.3X++Hospital/Nursing Management
TEAMAtlassian Corp. Plc Class A4X++Packaged Software
TFCTruist Financial Corporation3PRegional Banks
TWLOTwilio, Inc. Class A4X++Packaged Software
TWOU2U, Inc.4X++Packaged Software
VEEVVeeva Systems Inc Class A4P++Packaged Software
VIRVir Biotechnology, Inc.2P++Biotechnology
VIRTVirtu Financial, Inc. Class A2P++Investment Banks/Brokers
VLDRVelodyne Lidar Inc.1X++Semiconductors
VRTXVertex Pharmaceuticals Incorporated4P+Biotechnology
WWayfair, Inc. Class A4X++Internet Retail
WIXWix.com Ltd.4X++Information Technology Services
WKHSWorkhorse Group Inc.1X++Auto Parts: OEM
WORKSlack Technologies, Inc. Class A4X+Packaged Software
WTRGEssential Utilities, Inc.4PWater Utilities
ZGNXZogenix, Inc.1XPharmaceuticals: Other
ZMZoom Video Communications, Inc. Class A1P++Packaged Software
ZSZscaler, Inc.4X++Packaged Software

Rotation

BUYER’S EDGE
Trend’s still up until it’s not.

Big tech names sold off as value stocks were bid higher on the heels of the presidential election results. You’ve gotta go with what you see instead of what should be. 

INDEXWEEKCLOSECHANGE% CHANGEYTD %
DJIA29479.811156.414.13.3
Nasdaq11829.29-65.94-0.631.8
S&P 5003585.1575.712.211.0
Russell 20001744.0499.886.14.6

Monday’s massive rally lost it’s steam by the end of the day as the S&P 500 closed 1.7% off its high on heavy volume. This mark will serve as resistance, while the 50-day moving average serves as support below.  

Well above average volume makes for a convincing bullish argument. But watch the distribution on the Nasdaq. Market tops are a process more than they are an event. 

Weekly Advancing/Declining Volume NYSE: 1.6, NASDAQ: 1.3
Accumulation/Distribution Count, 20 DaysS&P 500: 4/3, NASDAQ:  4/5
Weekly Advances/Declines, IssuesNYSE: 4.1, NASDAQ:  2.6
New HighsNYSE:   431 (+67%), NASDAQ:  552 (+50%)
New LowsNYSE:  40 (-55%), NASDAQ: 67 (-53%)

We’re heading into traditionally strong time of year. We’re also seeing a lot of short covering. 

Market leadership may be shifting. Let’s watch for new top names to set themselves apart from the pack. So far, we’re seeing healthcare names setup really nicely. 

News from Pfizer (PFE, +6.1%) and BioNTech (BNTX, +15.22%) with their COVID vaccine reportedly more than 90% effective in trials could be a game changer for the economy.

Is this the end of the stay-at-home Covid economy? We’ve seen heavy selling in names like Teledoc (TDOC, -11.19%) and eSports ETF (ESPO, -4.86%), to name just a couple tracked here.  

Consumer spending is strong as evident with small caps having a massive week as the R2K shot 6% higher with Q3 earnings from the S&P 600 topped expectations by 50%. 

TOP DOWN, SECTOR PRICE ACTION & NEWS ANALYSIS

SYMBOLNAME% CHG40EMACHART
XLEEnergy Sector Fund17.11Bucks a downtrend for the week with a powerful move, but still remains in a larger, two-year downtrend. 
XLFFinancial Sector Fund8.29Shot convincingly above its four-month range. Lots of overhead resistance to cool its jets at these levels. 
XLIIndustrial Sector Fund5.43New high, trend up. 
XLREReal Estate Sector Fund5.28Shot convincingly above its four-month range. Lots of overhead resistance to cool its jets at these levels. 
XLPConsumer Staples Sector Fund3.75New high, trend up.
XLUUtilities Sector Fund3.06Approaching new high as it carves the right side of a base.  
XLVHealth Care Sector Fund2New high, trend up.
XLBMaterials Sector Fund1.49New high, trend up.
XLCCommunication Services Sector Fund0.64Approaching new high as it carves the right side of a base.  
XLYConsumer Discretionary Sector Fund0.45New high, trend up.
XLKTechnology Sector Fund-0.31Approaching new high as it carves the right side of a base.  

 Big Tech leadership has cooled. 

 Apple (AAPL, +0.48%), Microsoft (MSFT, -3.22%), and Facebook (FB, -5.61%) have narrowed their +two-month ranges. 

Alphabet (GOOG, +0.87%) bucked the trend as it hit a new high.  

Semiconductors (SMH, -0.41%) closed lower after hitting a new high. We want to see the uptrend stick here as the broader market correlated well with its success. 

Healthcare (XLV, +2%) hit a new high. 

Lots of individual names breaking out and setting up in Biotech (IBB, +2.41%). This theme has been a driving part of this report for months. Nothing new to readers here. 

Cannabis (MJ, -4.32%) closed down for the week after a 27% upside charge last week.  The Biden administration could decriminalized Marijuana at a federal level, and potentially a move to full legalization. 

GSRTRADES

These are the stocks in breakout mode that meet the strict criteria for Growth Stock Trades.

These top names are leadership and will help determine the success of others on our Bases and Lower Bases lists. Strong representation from biotech, cloud computing, stay at home, work at home, software and online retail. 

BREAKOUTS & PULLBACKS

TickerCompany NameTIERDemandIndustry
CDNACareDx, Inc.4X++Medical Specialties
CGCCanopy Growth Corporation3P+Agricultural Commodities/Milling
CRDFCardiff Oncology, Inc.3X++Medical/Nursing Services
CYTKCytokinetics, Incorporated1X++Biotechnology
EXASExact Sciences Corporation1X++Biotechnology
FOLDAmicus Therapeutics, Inc.4X++Biotechnology
FRHCFreedom Holding Corp.3P++Investment Banks/Brokers
FSLRFirst Solar, Inc.4P++Electronic Components
GRWGGrowGeneration Corp.1P++Wholesale Distributors
IIVIII-VI Incorporated1X++Electronic Equipment/Instruments
IPHIInphi Corporation3X++Semiconductors
IRIngersoll Rand Inc.3X+Industrial Machinery
MDBMongoDB, Inc. Class A4X++Packaged Software
NETCloudflare Inc Class A4X++Information Technology Services
NOVASunnova Energy International Inc4X++Wholesale Distributors
NOWServiceNow, Inc.4P++Information Technology Services
NTLAIntellia Therapeutics, Inc.3X++Biotechnology
NTRANatera, Inc.4X++Medical/Nursing Services
OCULOcular Therapeutix Inc1X++Pharmaceuticals: Major
PINSPinterest, Inc. Class A4P++Internet Software/Services
PLUGPlug Power Inc.3X++Electronic Components
RDS.BRoyal Dutch Shell Plc Sponsored ADR Class B4PIntegrated Oil
SNAPSnap, Inc. Class A4X++Internet Software/Services
SQSquare, Inc. Class A1P++Information Technology Services
STNEStoneCo Ltd. Class A4P++Packaged Software
SWAVShockwave Medical, Inc.2X++Medical Specialties
TERTeradyne, Inc.4P+Electronic Production Equipment
XPELXPEL, Inc.4P++Automotive Aftermarket
ZZillow Group, Inc. Class C2X++Information Technology Services

Follow GSRTrades for setups of top names.

Stay safe,

Dan