Bear Nothing

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