Bull Roll

Quick Take: Buy Bias. Growth Stocks continue to breakout and survive.

The Bull keeps rolling as the indexes flirt with new highs. A flood of money and a rebounding economy fuel the charge. 

For The Week:

INDEXCLOSE% CHANGEYTD %
DJIA27433.483.8-3.9
Nasdaq11010.982.522.7
S&P 5003351.282.53.7
Russell 20001569.186.0-5.9

The economy likely bottomed out in April, according to many economists. While these “experts” don’t always get it right, there’s no denying improving data. 

Workers are coming back in action. Nonfarm payrolls added 1.763 million for July. The belief is people returned to old jobs rather than new ones being created.

The unemployment rate has improved to just over 10%, this is an improvement from just over 11% in June. Bu it could take years to get the rate back below the pre-pandemic rate of 4%.

Further positive data came from the ISM report that showed manufacturing activity and non-manufacturing activity continued to expand in July.

Optimism over a vaccine was perpetuated with Novavax (NVAX, +19%) reporting positive results in its trials. The stock was highlighted multiple times here as a growth stock since April.

President Trump called for a shutdown of the China-based TikTok (ByteDance) and WeChat (Tencent Holdings, TCEHY, -1.85%) phone apps in the U.S. unless they found a domestic buyer within 45 days. 

Trump may be angling for China to open its market to fair play for American companies. The possibility also lingers that the apps will be bought by Microsoft, as talk of a deal between the companies continues. 

Look for more efforts to bring production back to the U.S., specifically pharmaceuticals, medical equipment and protective gear. 

America depends on China for about half of its medical supplies. China is the U.S.’s second-largest source of car parts. China is also believed to provide about 60% of all imported electronics, including cell phones. On the other side of the balance China was the fastest-growing market for U.S. exports for fifteen years. 

TECHNICALLY SPEAKING

  • Buy-volume prevails as the NYSE and Nasdaq posted buy/sell ratios of 1.6 and 1.7 respectively. 
  • Total Volume on the NYSE and Nasdaq exchanges matched last week’s.
  • Advances/Declines favored bulls with 3.0 and 2.8 ratios. 
  • New highs were up 12% for the week on the NYSE as it posted 289. The Nasdaq was up 50% at 477. 

LEADERSHIP

Top tech stocks hold their high ground with uptrends above 50-day moving averages. 

Facebook (FB, +5.82%), Apple (AAPL, +4.76%) Amazon (AMZN, +.09%), Netflix (NFLX, +1.20%) Google (GOOG, +0.78%) Microsoft (MSFT, +3.64%) 

Walt Disney (DIS) rocketed 11% after reporting a second quarter profit and strong subscriber numbers for its streaming platform. 

SECTOR ACTION

 SYMBOLNAME% CHG
XLIIndustrial Sector Fund4.74
XLFFinancial Sector Fund3.37
XLEEnergy Sector Fund3.19
XLCCommunication Services Sector Fund3.1
XLKTechnology Sector Fund3
XLYConsumer Discretionary Sector Fund2.47
XLBMaterials Sector Fund2.24
XLPConsumer Staples Sector Fund1.29
XLUUtilities Sector Fund1.08
XLVHealth Care Sector Fund0.83
XLREReal Estate Sector Fund0.66

THE GROWTH STOCK REPORT

Lots of names in Biotech and Medical Devices setting up. 

Click Here For Full Report

Stay safe,

Dan

GSRTrades July 31, 2020

THE GROWTH STOCK REPORT

Buy bias remains. Few opportunities abound. 

BREAKOUTS

SYMBOLNAMEINDUSTRY GROUP
AMDAdvanced Micro Devices, Inc.Semiconductors
APPSDigital Turbine, Inc.Internet Software/Services
BERYBerry Global Group IncContainers/Packaging
COOPMr. Cooper Group, Inc.Finance/Rental/Leasing
FBFacebook, Inc. Class AInternet Software/Services
NOWServiceNow, Inc.Information Technology Services
PFSIPennyMac Financial Services, Inc.Finance/Rental/Leasing
PRPLPurple Innovation, Inc.Miscellaneous

BASES

SYMBOLNAMEINDUSTRY GROUP
DXCMDexCom, Inc.Medical Specialties
ENPHEnphase Energy, Inc.Semiconductors
NEMNewmont CorporationPrecious Metals
RCMR1 RCM IncMiscellaneous Commercial Services
TTDTrade Desk, Inc. Class AAdvertising/Marketing Services

GSRTrades July 24, 2020

THE GROWTH STOCK REPORT 

Broken bullish patterns limit optimism for our beloved growth stocks.

BREAKOUTS

AEYEAudioEye, Inc.Internet Software/Services
ALNYAlnylam Pharmaceuticals, IncBiotechnology
CHGGChegg, Inc.Miscellaneous Commercial Services
CRSPCRISPR Therapeutics AGBiotechnology
CRWDCrowdStrike Holdings, Inc. Class APackaged Software
IMMUImmunomedics, Inc.Biotechnology
NKNantKwest, Inc.Biotechnology
PAASPan American Silver Corp.Precious Metals
RAREUltragenyx Pharmaceutical, Inc.Biotechnology
RMBLRumbleOn, Inc. Class BInformation Technology Services
SEDGSolarEdge Technologies, Inc.Electrical Products
TNDMTandem Diabetes Care, Inc.Medical Specialties
TTDTrade Desk, Inc. Class AAdvertising/Marketing Services
WRTCWrap Technologies, Inc.Industrial Conglomerates
ZMZoom Video Communications, Inc. Class APackaged Software

BASES

ALBOAlbireo Pharma, Inc.Pharmaceuticals: Other
AXNXAxonics Modulation Technologies, Inc.Medical Specialties
CGENCompugen Ltd.Biotechnology
DRNADicerna Pharmaceuticals, Inc.Biotechnology
EXASExact Sciences CorporationBiotechnology
OCULOcular Therapeutix IncPharmaceuticals: Major
OROsisko Gold Royalties LtdPrecious Metals
OTRKOntrak, Inc.Medical/Nursing Services
STNEStoneCo Ltd. Class APackaged Software
XLRNAcceleron Pharma IncBiotechnology
ZZillow Group, Inc. Class CInformation Technology Services

Tech Pullback

Quick Take: Buyer’s Bias. Leadership takes a hit as the broader market pulls back.

Dear Reader,

There is very little to inspire buyers these days. The bias remains bullish here as long as institutional grade selling remains absent and price holds above major moving averages. 

FOR THE WEEK:

INDEXCLOSE% CHANGEYTD %
DJIA26469.89-0.8-7.2
Nasdaq10363.18-1.315.5
S&P 5003215.63-0.3-0.5
Russell 20001467.55-0.4-12

Profit taking in the Nasdaq saw many strong names come back closer to earth. 

US relations with China remain at a low with the closure of the Chinese consulate in Houston, and the reciprocated action of closing the US consulate in Wuhan.

President Trump said the coronavirus will likely get worse before it gets better. 

Consumer spending will take a hit this fall if Treasury Secretary Mnuchin’s plan of reducing unemployment benefits to 70% of what people were earning.

Gold hit another high as the Dollar hit a low. Defense under uncertainty is to be discerned from these types of moves. 

Expect good earnings news to come out early in season for second quarter announcements. Bad news will likely come later, presenting a sentiment challenge for the bulls. 

TECHNICALLY SPEAKING

  • Total volume for the week held pace with last week. Bulls held a slight edge with advance/decline ratios of 1.1 and 1.2 for the NYSE and Nasdaq. 
  • The NYSE saw a 12% increase in new highs to 240.
  • Both the NYSE and Nasdaq had a 9% decrease of new low as they notched in 20 and 64 respectively. 
  • On the Advance/Decline front, the bull cooled from last week as the NYSE posted a barely bullish 1.4 and the Nasdaq a barely bearish 0.8

WEEKLY SECTOR ACTION

Tech took a step back for the week as discretionary showed a bullish vote for the economy with its holdings in retail, automobiles, consumer durables, apparel, hotels, and restaurants.

SCTRNAME% CHG
Consumer Discretionary Sector FundXLY1.7
Energy Sector FundXLE0.82
Consumer Staples Sector FundXLP0.54
Financial Sector FundXLF0.32
Materials Sector FundXLB0.31
Utilities Sector FundXLU0.07
Industrial Sector FundXLI-0.16
Real Estate Sector FundXLRE-0.22
Communication Services Sector FundXLC-0.56
Health Care Sector FundXLV-0.79
Technology Sector FundXLK-1.63

LEADERSHIP

Tesla (TSLA, -5.59%) sold off for the second week in a row. This electric car/technology company has been more of a read on sentiment than a solid investment. Its market cap has it as a potential new member of the S&P 500.

As a group, traditional leadership from the FAANG and friends declined with 50-day moving averages poised to serve as support. 

Facebook (FB, -4.68%), Apple (AAPL, -3.85%), Netflix (NFLX, -2.54%) Google (GOOG, -0.24%.) 

Microsoft (MSFT, -0.78%) reported lower than expected growth for its cloud server business Azure.   

Amazon (AMZN, +1.58%) bucked the trend here as its pandemic friendly business continues to thrive. 

Please refer to The Growth Stock Report for individual stock setups. 

Play smart, play safe.

Dan

Corona Drift

Quick Take: Buy Bias. Fed fueled buying ignores weak business and economic data. 

FOR THE WEEK

For all the reasons to sell amidst this coronavirus infected economy, the market just doesn’t.

The market will continue to drift higher until it doesn’t.  

INDEXCLOSECHANGE% CHANGEYTD %
DJIA26671.95596.652.3-6.5
Nasdaq10503.19-114.25-1.117.1
S&P 5003224.7339.691.2-0.2
Russell 20001473.3250.643.6-11.7

Money shifted into value oriented Industrials, Materials and Healthcare this week as the tech gorillas cooled with a pullback. 

Watch for growth stocks as a group to cool off as funds take profits from a legendary rally. Though opportunities still abound for new breakouts. 

Big dividend payers remain a thing. Watch how the Dow doesn’t sell off as hard as the S&P 500 and Nasdaq on down days. Treasuries won’t yield much as the government promises to keep rates low for a couple of years.

Optimism is growing on the covid-19 vaccine front as a collaboration with Pfizer (PFE, +1.15%) and BioNTech (BNTX, +11.21%) received fast-track designation from the FDA.  

Moderna’s (MRNA, +51.49) had reported a positive first phase in its study.  Novavax (NVAX, +48.89%) also continues to receive votes of hope as its stock teared higher for another week.

The market’s V recovery continues to be supported by economic data.  

The trend in job recovery continues, though about a third of the jobs lost during the virus lockdown have been recovered, according to US employment data released Thursday.

As the band plays upbeat, a darker reality threatens with the coronavirus. 

States making up nearly a third of the US economy reported a fearsome uptick in covid-19 cases. California, Texas, Florida and Arizona are taking measures to counter the spread.  

There’s no guidebook for this. We simply don’t know what to expect as the pandemic plays out. 

No one expects year over year earnings for the second quarter to be good. The attention will go to guidance, as usual.

Analysts may have predicted the worst for companies struggling during lockdown, look for surprises, and more importantly the reactions to those surprises.

Big banks reporting earnings largely beat estimates as a group. But uncertainty in the market has led them to reserving more cash for failed loans. 

News reactions were a mixed bag for the six largest banks reporting: Citigroup (C, -4.62%), JPMorgan (JPM, +1.96%), Wells Fargo (WFC, -2.04%), Goldman Sachs (GS, +2.85%), Bank of America (BAC, -3.33%) and Morgan Stanley (MS, +5.24%.)

Lack of participation in this bull market from the financials does not bode well for business. Price action on the Financial sector ETF  (XLF, +2.09%) is not supporting a rosy future as it continues to struggle with mostly sideways chop.

LEADERSHIP

Tech leadership tests its bullish form with sizable drops. Let’s call it profit taking after huge runs since March. 

Facebook (FB, -1.24%), Apple (AAPL, .42%) Amazon (AMZN, -7.44%), Netflix (NFLX, -10.16%) Google (GOOG, -1.7%) Microsoft (MSFT, -5.05%)  

Netflix (NFLX) shares fell 10%, with a bulk of those losses coming after the company issued cautious subscriber guidance at the end of the week.

Gold (GLD, +0.55%) and Biotech (IBB, +3.41) have their breakouts intact. These have been the drivers in the Materials and Healthcare sectors. 

TECHNICALLY SPEAKING

Picture Perfect Breakout Setup
  • The S&P 500 is poised for another breakout as it trends above its major moving averages, just 5% from its 52-week high.
  • NYSE volume was 7% lower than last week as edged out sellers with a 1.2 ratio.
  • Nasdaq volume was 10% higher as buyers prevailed with a 1.7 ratio.
TICKERINDUSTRY ETF% CHG
XLIIndustrial Sector Fund5.87
XLBMaterials Sector Fund5.47
XLVHealth Care Sector Fund5.14
XLUUtilities Sector Fund4.22
XLEEnergy Sector Fund3.24
XLPConsumer Staples Sector Fund2.16
XLFFinancial Sector Fund2.09
XLYConsumer Discretionary Sector Fund0.4
XLREReal Estate Sector Fund0.06
XLCCommunication Services Sector Fund-0.5
XLKTechnology Sector Fund-1.16

GROWTH STOCKS

Buyer’s Bias intact. Opportunities abound.

BREAKOUTS

AEYEAudioEye, Inc.Internet Software/Services
ALNYAlnylam Pharmaceuticals, IncBiotechnology
CHGGChegg, Inc.Miscellaneous Commercial Services
CRSPCRISPR Therapeutics AGBiotechnology
CRWDCrowdStrike Holdings, Inc. Class APackaged Software
IMMUImmunomedics, Inc.Biotechnology
NKNantKwest, Inc.Biotechnology
PAASPan American Silver Corp.Precious Metals
RAREUltragenyx Pharmaceutical, Inc.Biotechnology
RMBLRumbleOn, Inc. Class BInformation Technology Services
SEDGSolarEdge Technologies, Inc.Electrical Products
TNDMTandem Diabetes Care, Inc.Medical Specialties
TTDTrade Desk, Inc. Class AAdvertising/Marketing Services
WRTCWrap Technologies, Inc.Industrial Conglomerates
ZMZoom Video Communications, Inc. Class APackaged Software

BASES

ALBOAlbireo Pharma, Inc.Pharmaceuticals: Other
AXNXAxonics Modulation Technologies, Inc.Medical Specialties
CGENCompugen Ltd.Biotechnology
DRNADicerna Pharmaceuticals, Inc.Biotechnology
EXASExact Sciences CorporationBiotechnology
OCULOcular Therapeutix IncPharmaceuticals: Major
OROsisko Gold Royalties LtdPrecious Metals
OTRKOntrak, Inc.Medical/Nursing Services
STNEStoneCo Ltd. Class APackaged Software
XLRNAcceleron Pharma IncBiotechnology
ZZillow Group, Inc. Class CInformation Technology Services

Control your loses, let your winners run.

Dan

Bio Bull

The Bear put a headlock on the Bull as we head into a traditionally strong pre-holiday week. 

Bias here has gone down to a cautionary Yellow Flag. Recent Growth Stock breakouts are working, though road signs flash warning as the uncertainty of a pandemic looms. 

For the Week: 

  • The S&P 500, -2.42% 
  • The Nasdaq, -2.59%
  • The Dow, -2.84%

Don’t look too much into the selling. Despite two clear distribution days, the bias here won’t shift lower as long as leadership and price action hold up above the major moving averages. 

Technology continues to pull action higher, though most other sectors continue to struggle under the 200-day averages. 

Lighter volume for the NYSE and Nasdaq was’t panic motivated, and was long overdue as a consequence of an “over bought” market. 

The coronavirus battlefront threatens further economic impact. Rising infection and hospitalization rates in some regions will thwart business. To what degree is uncertain.  

The Fed showed concern for banks when Friday it instructed them to preserve capital by putting a hold on buybacks and paying dividends. Continued high unemployment is worrisome, and will need to be resolved before stimulus wears off. 

Another round of government stimulus may very well be in the works, which would be a big boost to market sentiment. 

Next week will be a day shorter as the U.S. celebrates the Fourth of July

It’s window dressing time. Quality names are well bid as being as portfolio managers look to impress customers with their holdings.

Small caps will likely benefit from the annual Russell 2000 realignment on June 29, as well as the 90 day ETF realignment to end the quarter.

The best thing the Bull has going for it is names from the Dow paying dividends four times greater than the 10-year Treasury notes. Smart money will gravitate to this.

LEADERSHIP

The semiconductor index (SMH, -1.87%) is flirting with a failed breakout. Action here is key to the broader market’s direction.

Watch for any weakness in the internet (FDN, -2.01%) and software (IGV, -0.88%) indexes. The Bull has been led from its March lows by these stay at home friendly businesses. Any faltering could pull major indexes in the southern direction that the energy, finance, retail, industrial and transportation stocks have been leaning toward. 

Facebook (FB, -8.32%) and Google (GOOG, -5.65%) took dip down to their 50-day moving averages this week, breaking their upward drifts. 

Meanwhile, this group of stellar tech names continues to hold bullish form: Apple (AAPL, -3.07%) Amazon (AMZN, -2.24%), Netflix (NFLX, -4.83%) and Microsoft (MSFT, -2%.)  

Gold (GLD, +0.45%) remains near highs. The biotechs (IBB, -2%) continue to produce a multitude of growth stock breakouts. See below. 

TECHNICALLY SPEAKING

  • The S&P 500 is lacking a long-term trend as the 50-day moving average tracks slow the 200-day MA.
  • NYSE volume for the week was 5% lighter than last week, and favored the bears with a 0.6 ratio of buyers to sellers. 
  • Nasdaq volume was 15% higher and showed an even 1 ratio of buyers to sellers.
  • Declining issues dominated for the NYSE and Nasdaq with advance/decline ratios of 0.3 and 0.4 respectively. 

GROWTH STOCKS

Growth Stock breakouts are holding, though we’re seeing some erosion in these quality names as fewer appear to be on track for new buy setups. 

Fresh breakouts in biotech show optimism for the industry as the pandemic takes  center role in the healthcare sector. 

Breakouts

PFSIPennyMac Financial Services, Inc.Finance/Rental/Leasing
PLMRPalomar Holdings, Inc.Property/Casualty Insurance
ZMZoom Video Communications, Inc. Class APackaged Software
AMRCAmeresco, Inc. Class AEngineering & Construction
CHGGChegg, Inc.Miscellaneous Commercial Services
IPHIInphi CorporationSemiconductors
TTDTrade Desk, Inc. Class AAdvertising/Marketing Services
VAPOVapotherm, Inc.Medical Specialties
ALNYAlnylam Pharmaceuticals, IncBiotechnology
CGENCompugen Ltd.Biotechnology
IMMUImmunomedics, Inc.Biotechnology
OCULOcular Therapeutix IncPharmaceuticals: Major
CRSPCRISPR Therapeutics AGBiotechnology
CRWDCrowdStrike Holdings, Inc. Class APackaged Software
EXPIeXp World Holdings, Inc.Financial Conglomerates
TWSTTwist Bioscience Corp.Biotechnology
AEYEAudioEye, Inc.Internet Software/Services
RAREUltragenyx Pharmaceutical, Inc.Biotechnology
WRTCWrap Technologies, Inc.Industrial Conglomerates
CDNACareDx, Inc.Medical Specialties
ALBOAlbireo Pharma, Inc.Pharmaceuticals: Other

Bases

NBIXNeurocrine Biosciences, Inc.Biotechnology
NTRANatera, Inc.Medical/Nursing Services
XLRNAcceleron Pharma IncBiotechnology
BYNDBeyond Meat, Inc.Food: Major Diversified
PAASPan American Silver Corp.Precious Metals
TNDMTandem Diabetes Care, Inc.Medical Specialties
STNEStoneCo Ltd. Class APackaged Software
LGIHLGI Homes, Inc.Homebuilding
PAYCPaycom Software, Inc.Packaged Software
DRNADicerna Pharmaceuticals, Inc.Biotechnology
ZZillow Group, Inc. Class CInformation Technology Services
IIPRInnovative Industrial Properties IncReal Estate Investment Trusts
SILKSilk Road Medical, Inc.Medical Specialties
SWAVShockwave Medical, Inc.Medical Specialties
OROsisko Gold Royalties LtdPrecious Metals
AKCAAkcea Therapeutics, Inc.Pharmaceuticals: Major
EXASExact Sciences CorporationBiotechnology
KERNAkerna Corp.Data Processing Services
DRNA: Always good to see strong buy-volume prior to breakout.
PRTK: Another biotech with strong fundamentals in a sound base.

Stay safe,

Dan

Quality Flight

Quick Take: Buy Bias. Despite significant economic uncertainty, buyers continue to step up to support growth stocks. But we’re long due for a pullback. 

Marauders:

Typical of June, a flight to quality bid shares higher as portfolio managers maneuvered to add leaders in their holdings.

Quadruple witching in the options market on Friday capped off a week that had the Nasdaq came just short of a new high. A small cap rally also added heat as the Russell 2000 index realigns itself (IWM, +2.31%). 

The Nasdaq’s +3.73% gain came on volume down 10% from last week’s heavy selling rout. It convincingly favored advancers to decliners by more than two to one. 

The S&P 500 posted posted a +1.86% gain and the Dow was +1.04% with NYSE volume off 15% from last week with advancers and decliners a near match. 

Stocks appear to be pricing in a V-shape recovery vs. the  Fed’s  U-shape prediction. The old adage that “You don’t fight the Fed,” as well as “Don’t fight the tape,” has been the winning mantra since stimulus plans were set in play. 

Friday’s heavy volume down day would be an ominous sign of institutional dumping if it weren’t for options expirations. However, the major indexes have been taking in more buy-volume than sell volume since putting in their lows in March. 

Though much uncertainty remains regarding the pandemic, which is still on, as well as what happens when stimulus money wears off, which may happen in the Fall. Let’s not forget it’s an election year and the country is going through historical social unrest. 

Covid-19 won’t kill economy. Rising infection rates in 15 states has raised fears. Though in ten of the states the increase is minor, and somewhat expected after reopening from lockdown. Rates have been falling in 16 states. 

The virus situation may be more severe for states such as Arizona, South Carolina and Alabama, which have seen more severe upticks. 

The market has rightly favored companies with business models that cater to the agoraphobic. 

Tech leadership from FB, AAPL, AMZN, NFLX, GOOG and MSFT was solid for the week. Take not that GOOG is showing relative weakness here, down -7% from its 52-week high, with the rest of the pack down less than 2%.

Internet, cloud computing, social media and esports stocks rage on.

Biotech (IBB, +7.33%) had a monumental week as it set a new high as it continues to breakout from a five year base. This was the most shorted sector, so no doubt covering  here. Though the virus has made the sector attractive for its potential to cure. 

Gold (GLD, +0.87%) holds near highs not seen in eight years, as gold miners (GDX, +2.79%) recover from pullback mode. Similar story for silver miners (SLVP, +0.34%.) 

TECHNICALLY SPEAKING, 

  • The S&P 500 is showing near-term weakness as it consolidates under a bearish island top.
  • Strength For The Week: Healthcare, Technology, Communications
  • Weakness: Utilities, Energy, Real Estate

GROWTH STOCKS

It’s breakout-palooza out there. Hit ‘em until it stops. I like to ring the cash register at 20%. Do it five times to more than double your money. 

Last week we saw from our list:

+40% in one week for this biotech.

+40% in one week for this Chinese educator.

+42% in one week for this Covid-19 vaccine hopeful.

BREAKOUTS:

ADBEAdobe IncSoftware & IT Services
APPSDigital Turbine IncSoftware & IT Services
EAElectronic Arts IncSoftware & IT Services
EPAMEpam Systems IncSoftware & IT Services
HOLXHologic IncHealthcare Equipment & Supplies
LOWLowe`s Companies IncSpecialty Retailers
PFSIPennyMac Financial Services IncBanking Services
PLMRPalomar Holdings IncInsurance
RAPTRapt Therapeutics IncBiotechnology & Medical Research

BASES

ALGNAlign Technology IncHealthcare Equipment & Supplies
BLFSBiolife Solutions IncHealthcare Equipment & Supplies
CORTCorcept Therapeutics IncPharmaceuticals
CPRXCatalyst Pharmaceuticals IncBiotechnology & Medical Research
DHXDHI Group IncProfessional & Commercial Services
FNDFloor & Decor Holdings IncSpecialty Retailers
GDDYGoDaddy IncSoftware & IT Services
KKellogg CoFood & Tobacco
LAKELakeland Industries IncTextiles & Apparel
LLLumber Liquidators Holdings IncSpecialty Retailers
MVISMicroVision IncElectronic Equipment & Parts
RMDResmed IncHealthcare Equipment & Supplies
SHWSherwin-Williams CoChemicals
SITESiteOne Landscape Supply IncFood & Tobacco

TOP INDUSTRY GROUPS, RANKED BY PROXIMITY TO 52-WEEK HIGH

Global X Social Media ETF (XNAS:SOCL)
Invesco NASDAQ Internet ETF (XNAS:PNQI)
VanEck Vectors Video Gaming and eSports ETF (XNAS:ESPO)
First Trust Cloud Computing ETF (XNAS:SKYY)
Invesco Dynamic Software ETF (ARCX:PSJ)
Amplify Online Retail ETF (XNAS:IBUY)
Global X Future Analytics Tech ETF (XNAS:AIQ)
Invesco Dynamic Networking ETF (ARCX:PXQ)
Sea Ltd (XNYS:SE)
SPDR S&P Health Care Equipment ETF (ARCX:XHE)

Get on, play it safe.

Dan

Snap Back

Quick Take: Sell Bias. Economic and pandemic uncertainty serve as a backdrop in an election year.  

Dear Market Player:

For the week, the Bull took a one-two hit as sellers took profits amid fears over the world’s health and finance concerns. 

The seemingly overdue selling sent the S&P 500 down -4.78% on institutional grade volume, and the Nasdaq down -2.3% on volume that favored the bulls by a modest margin. 

The week’s heaviest selling came Thursday on the heels of Fed Chairman Jerome Powell’s press conference where he stated raising interest rates wasn’t a consideration given the country’s  economic situation.

The Fed said it doesn’t see the economy returning to pre-pandemic levels until 2022. This year’s GDP may fall 6.5% and unemployment, not at about 13%, may recover to about 9% by the end of the year.  

A resurge in covid-19 cases in places such as Florida, Texas and Arizona reminded the country still has an invisible enemy to reckon with. 

Treasury Secretary Steve Mnuchin said a second quarantine was not an option, though a second round of stimulus checks may be.

A market awash in cash keeps the Bulls perky. They are reassured the Fed has their back as it expects the economy will continue to tick. 

Fund managers in June typically gravitate toward quality stocks as they add the winners to portfolios to impress clients. We’ve seen top dividend vehicles attract bids as bonds lose popularity with low yields. 

The Tech leaders pulled back with the broader market for the week, though still well above major moving averages . They continue to serve as strength in an economy that favors their “do it from home” offerings. FB, AAPL, AMZN, NFLX, GOOG and MSFT. 

New highs encourage from MICROSOFT (MSFT, +0.29%) chip standout Nvidia (NVDA, +0.14%) and eSports ETF (ESPO, +0.89%.) 

The US presidential election November will attract more attention from market pundits in the coming months. The corporate America’s tax structure will have an impact on its outcome. Look for polls as influence to buyers and sellers. 

Evidence of froth persists as low priced stocks have attracted bids, presumably from Robinhood type traders looking for an easy buck. This type of activity from the “lesser informed” has gone hand-in-hand with market tops before. 

NEXT WEEK

Tuesday: Earnings announcement from software maker Oracle (ORCL) and homebuilder Lennar (LEN.) 

Thursday: Earnings announcement from Kroger (KR.)

Friday: Earnings announcement from Carmax (KMX) AutoZone (AZO) and Tesla (TSLA.) 

TECHNICALLY SPEAKING

  • The S&P 500 closed just above its 200-day moving average for the week.
  • Two distribution days gave the Bear and edge for the week. 
  • All sectors posted losses.
  • The least weak were: Tech (XLK, -1.97%, Communications (XLC, -2.50%) and Consumer Staples (XLP, -3.81%)
  • Weakest were: Energy (XLE, -11.2%), Financial (XLF, -9.18%) and Materials (-8.01%)
  • NYSE Volume was 10% higher than last weak with a slightly bearish .8 Up/Dn ratio.
  • Nadaq Volume was 5% higher with a slightly bullish Up/Dn ratio of 1.  
  • The Advance Decline ratios were decidedly bearish with the NYSE at .2 and the Nasdaq at .4.

GROWTH STOCKS

Watch for recent breakouts falling apart. A handful of these happened last week.  This would serve as a caution for potential breakouts.

Homebuilders and REITs setting up in bases. Success here will bode well for the broader market.

Biotechs are holding their bullish patterns.

BREAOUTS

Adobe IncADBESoftware & IT Services
Autodesk IncADSKSoftware & IT Services
Biomarin Pharmaceutical IncBMRNPharmaceuticals
Datadog IncDDOGSoftware & IT Services
Fastly IncFSLYSoftware & IT Services
Livongo Health IncLVGOHealthcare Equipment & Supplies
Neurocrine Biosciences IncNBIXBiotechnology & Medical Research
Trade Desk IncTTDSoftware & IT Services

BASES

Adaptive Biotechnologies CorpADPTBiotechnology & Medical Research
American Homes 4 RentAMHResidential & Commercial REIT
Beyond Meat IncBYNDFood & Tobacco
D.R. Horton IncDHIHomebuilding & Construction Supplies
GSX Techedu IncGSXPersonal & Household Products & Services
Invitation Homes IncINVHResidential & Commercial REIT
ServiceNow IncNOWSoftware & IT Services
Paycom Software IncPAYCSoftware & IT Services
Pinterest IncPINSSoftware & IT Services
Peloton Interactive IncPTONLeisure Products
10X Genomics IncTXGHealthcare Equipment & Supplies

Coming IPO’s from online used car seller Vroom (VRM) and Peter Thiel’s data miner Palantir hope to attract the bids like the recent IPO electric pickup truck maker Nikola (NKLA.)  

Stay safe,

Dan

FauxMo

Quick take: No Bias. Too much uncertainty.

Fear of missing out was the rally cry for many Bulls heading into Friday’s unemployment numbers. But apparently few were able to grasp the unexpected addition of 2.5 million jobs last month, which turbo charged shares even higher with the believe that a V-shaped recovery has been nailed in. 

For the week, the S&P 500 shot up +4.91% and the Nasdaq +3.42%. The buying was large and heavy with all sectors participating. 

The unexpected data miss from the “experts” has raised eyebrows. Perhaps the unfamiliar ground of shutting down the economy coupled with stimulus programs like the Payroll Protection Program has distorted economists visions. Perhaps the government’s history of errors in data plays a roll. 

What is clear is that the economy is mostly open now. What is unclear is how the economy will look when the stimulus runs out. The unemployment rate stands at 13% at them moment, down from 15% before Friday’s announcement. 

Stocks do not offer an attractive risk-reward scenario. Difficult to bet the market will continue to charge higher given valuations and the uncertainty of the economy – as well as the coronavirus.

The Dow, +6.81%, has been a big upside driver for the market as the hunt for yield continues. Dividends pay higher than treasuries. It’s hard to retire. 

Mixed signals with fund flows.:

While discount brokers have reported large inflows, many wealth advisors and fund managers haver reported outflows from stocks and into the safety of bonds. 

Large numbers of block trades Friday may suggest real buying. Funds available from quantitive easing will weigh in as will short covering.

For a change, the market is being led by non-tech names. Tech remains firm, with the FAANG and Microsoft stocks showing strength. But it’s the breadth of the rest of the market that has really stepped in of late. 

We may see some bad earnings reports in the second quarter, though the prospects are better for the second half of the year – IF the coronavirus does’t become a problem again. 

This pandemic market has created winners and losers depending on how well a companies model has allowed them to adjust to quarantines. 

There is always something to be afraid of.

Commercial Real Estate is threatened with with nearly half the rents not paid in May. Starbucks, TJ Max and Ross Store are among those who reportedly did not pay.

Wells Fargo (WFC, +19.64%) pulling back on auto and home equity loans is a concern for the credit market. Rental car company Hertz declaring bankruptcy is also worth taking note of for signs of a trend, or perhaps opening the door for other companies to succeed. 

TECHNICALLY SPEAKING

  • The S&P 500 is trending higher above major moving averages, and is abut 6% away from its February high.
  • NYSE about 25% higher than last week and the Nasdaq 40% higher. 
  • NYSE buy-volume dominating sell-volume by more than 4 to 1, Nasdaq more than 2 to 1. 
  • All sectors advanced, with Industrials (XLI, +7.12%), Consumer Discretionary (XLY, +7.06%) and Energy (XLE, 6.08%) the biggest winners. 

GROWTH STOCKS

Loads of high quality setups. We can see the 5G stocks making bases now, though they’re not qualifying with underlying fundamentals.

BREAKOUTS

Abbvie IncABBVPharmaceuticals
Autodesk IncADSKSoftware & IT Services
A. O. Smith CorpAOSMachinery, Equipment & Components
TopBuild CorpBLDConstruction & Engineering
Biomarin Pharmaceutical IncBMRNPharmaceuticals
Deckers Outdoor CorpDECKTextiles & Apparel
Danaher CorpDHRHealthcare Equipment & Supplies
Epam Systems IncEPAMSoftware & IT Services
GoDaddy IncGDDYSoftware & IT Services
Acushnet Holdings CorpGOLFLeisure Products
Howmet Aerospace IncHWMMetals & Mining
Horizon Therapeutics PLCHZNPPharmaceuticals
Lowe’s Companies IncLOWSpecialty Retailers
Livongo Health IncLVGOHealthcare Equipment & Supplies
Paycom Software IncPAYCSoftware & IT Services
Pool CorpPOOLLeisure Products
Thor Industries IncTHOLeisure Products
Trade Desk IncTTDSoftware & IT Services
UnitedHealth Group IncUNHHealthcare Providers & Services
Slack Technologies IncWORKSoftware & IT Services
Williams-Sonoma IncWSMSpecialty Retailers

BASES

American Airlines Group IncAALPassenger Transportation Services
Avantor IncAVTRHealthcare Equipment & Supplies
Brunswick CorpBCLeisure Products
BWX Technologies IncBWXTAerospace & Defense
Beyond Meat IncBYNDFood & Tobacco
Charter Communications IncCHTRMedia & Publishing
D.R. Horton IncDHIHomebuilding & Construction Supplies
DaVita IncDVAHealthcare Providers & Services
Floor & Decor Holdings IncFNDSpecialty Retailers
Heineken NVHEIABeverages
Hologic IncHOLXHealthcare Equipment & Supplies
J B Hunt Transport Services IncJBHTFreight & Logistics Services
Manhattan Associates IncMANHSoftware & IT Services
Microsoft CorpMSFTSoftware & IT Services
Cloudflare IncNETSoftware & IT Services
ServiceNow IncNOWSoftware & IT Services
Peloton Interactive IncPTONLeisure Products
SiteOne Landscape Supply IncSITEFood & Tobacco
Stericycle IncSRCLProfessional & Commercial Services
Atlassian Corporation PLCTEAMSoftware & IT Services
10X Genomics IncTXGHealthcare Equipment & Supplies
Ubiquiti IncUICommunications & Networking
VMware IncVMWSoftware & IT Services

The stock market has not reacted to the protests and riots across the country. That shouldn’t be a sign of uncaring, only that it doesn’t appear to be taking away from business. Many companies have stepped up and donated for the sake of ending racism.

Society will ultimately be better for all of this. As Martin Luther King said, “riots are the language of the unheard.” Hopefully a lot of listening will take place as response.

There will come a day where people are only seen by their good actions and bad actions. Skin color and culture will be irrelevant in the true judgment of a person.

Stay safe,

Dan

Up And Away

Quick Take: No Bias. Uncertainty remains, though you can’t fight the Fed. 

Never count out American optimism. People want to get back to normal. Rockets and riots aside, this market continues to find buyers. 

The S&P 500 rose 3% for the week and is 11% off its 52-week high. The Nasdaq rose 1.77% and is down less than 4% from its high in February.

Scores of setups from growth stocks with new highs from top earners and issues ready to breakout to new highs. Forecasts from companies benefiting from the changed economy are bright. 

All of this upside has happened with a Sell Bias, which has now turned Neutral.  Uncertainty over the true economic damage as well as the future course of the coronavirus keeps vision cloudy.  

Clearly, the government stimulus is looking like a savior at this juncture. The big question is will the money outlast the coronavirus?

Dow stocks paying good dividends were in favor this week as subtle profit taking from tech stocks took place. 

Surprising economic data with consumer confidence up for April, as were new home sales. Personal savings also rose a record 33%. 

President Trump won’t likely want to risk letting the stock market to flounder in an election year. Though tensions with China, and potential interference with trade remain a major threat to the market. 

LEADERSHIP

FAANG Stocks keep their leadership intact with strong, bullish chart patterns, though none hit new highs for the week. 

New highs are just a shot away with basing patterns from Apple (AAPL), (GOOG) and Microsoft (MSFT)  

TECHNICALLY SPEAKING

  • The S&P 500 regained its 200-SDMA with a solid four closes above the mark for the week. 
  • All sectors were positive for the week.
  • Advancing volume ruled for the second week in a row for the NYSE and Nasdaq.
  • A touch less broad than last week, the rally experience just a little fewer advanced and new highs. 
  • Near 52-week highs and relatively strong since the March lows are Gold (GLD, -0.18%), Healthcare (XLV, +3.40%) and Technology (XLK, +1.53%) Sectors were well bid. 
  • Sectors lagging below major moving average with relative weakness are Real Estate (XLRE, +5.96%) and Industrials (XLI, +6%. s)

GROWTH STOCKS

Novavax (NVAX, -0.15) stays alive with its breakout. Sell-volume has been lighter than buy-volume, giving hope to this stock that’s doubled since we first mentioned it a few weeks ago. 

Many believe we could see multiple coronavirus vaccines ready by the end of the year as more than 100 vaccines are in development.  

Though any success with a vaccine might not mean the end of the coronavirus. Vaccines for the flu only work half the time. 

BREAKOUTS

Biomarin Pharmaceutical IncBMRNPharmaceuticals
Charter Communications IncCHTRMedia & Publishing
Acushnet Holdings CorpGOLFLeisure Products
Cloudflare IncNETSoftware & IT Services
Pool CorpPOOLLeisure Products
Atlassian Corporation PLCTEAMSoftware & IT Services
Williams-Sonoma IncWSMSpecialty Retailers

BASES

A. O. Smith CorpAOSMachinery, Equipment & Components
Avantor IncAVTRHealthcare Equipment & Supplies
TopBuild CorpBLDConstruction & Engineering
Beyond Meat IncBYNDFood & Tobacco
Deckers Outdoor CorpDECKTextiles & Apparel
D.R. Horton IncDHIHomebuilding & Construction Supplies
DaVita IncDVAHealthcare Providers & Services
Epam Systems IncEPAMSoftware & IT Services
GoDaddy IncGDDYSoftware & IT Services
J B Hunt Transport Services IncJBHTFreight & Logistics Services
Manhattan Associates IncMANHSoftware & IT Services
Microsoft CorpMSFTSoftware & IT Services
SiteOne Landscape Supply IncSITEFood & Tobacco
Thor Industries IncTHOLeisure Products
Ubiquiti IncUICommunications & Networking
UnitedHealth Group IncUNHHealthcare Providers & Services

TOP 10 ETF’s As Ranked By New 52-Week Highs

First Trust Cloud Computing ETF (XNAS:SKYY)
Invesco Dynamic Software ETF (ARCX:PSJ)
First Trust NASDAQ Cybersecurity ETF (XNAS:CIBR)
Invesco Dynamic Networking ETF (ARCX:PXQ)
Amplify Online Retail ETF (XNAS:IBUY)
VanEck Vectors Video Gaming and eSports ETF (XNAS:ESPO)
Invesco NASDAQ Internet ETF (XNAS:PNQI)
Global X Social Media ETF (XNAS:SOCL)
Global X Future Analytics Tech ETF (XNAS:AIQ)
SPDR S&P Health Care Equipment ETF (ARCX:XHE)

This weekend’s launch of the combined SpaceX and Nasa rocket marks a turning point in the space industry where the private sector becomes involved. Perhaps as pivotal as when the government handed over the Internet to the private companies. 

SpaceX spent $400 million to develop its Falcon 9 rocket, about a tenth of what it costs Nasa. 

Stay safe,

Dan

Beach Ball

Quick Take: Sell Bias. Uncertainty in with a low Risk/Reward environment.

Dear Reader:

Stocks drifted higher for the week, like a beach ball catching a warm breeze of hope into the Memorial Day weekend.  

For the week, the S&P 500, +3.20% and the Nasdaq, +3.44% experienced broad-based buying on lighter volume, driven largely by some of sectors that have been the weekest from the past few weeks.

Trend Watch

COVID-19 is on the decline across the US, for the moment. New hospitalizations have dropped by 50% in the last 30 days, and deaths continue to decrease week over week. Though caution is due as the numbers have only plateaued for Los Angleles, Chicago and Washington DC.

States continued to re-open their economies at varied paces. Estimates are too fuzzy to take faith in. Most believe it will be another year for recovery of jobs and earnings lost.  

Pick your pattern: V-L-E-U-M-A. Stocks have put in a V pattern recovery off their bottom last month. The debate is wether or not it will mirror the economic recovery.  

Central banks around the world don’t have much room to lower rates. US Treasury Secretary Steven Mnuchin said the economy may experience “permanent damage” if quarantine rules stay in place for too long.

Chinese oil demand has returned. The leading commodity price index, the CRB, which includes oil, is down nearly a third since February. Economic bellwether Copper continues to weigh it down with low demand.  

Signs of commercial real estate weakness should be watched as the sectors deals with a changing economy. Stay-at-home workers may be the new trend, which if so, may lead to businesses wanting smaller footprints with their properties.  

So far, most commercial real estate REITs have reported being stable, according to trade group Nareit. Apartment REIT rent collections in May held at 95% to match April collections. Office real estate reported collections 92%, down 1% from April. 

Shopping center REITs have been the hardest hit as owners report collecting on just under half of their rents.  Grocery and drug stores have propped up free-standing retail REITs as the sector reported receiving 70% of rents for April and May. 

Four large retailers have declared bankruptcy during the pandemic: JCPenney, Neiman Marcus, Pier 1 and True Religion all declaring bankruptcy. 

Leaders

Amazon stock (AMZN, +1.12%) hit an all time high this week as its sales have ramped up during the quarantine. The Retail sector (RTH, +2.15%) closed the week just shy of an all time high, driven primarily from large online sellers like

Facebook (FB, 11.40%) hit an all-time new high after announcing its new online shop service, which will allow merchants to use their existing e-commerce sites into Facebook more easily. The company will collect on transaction revenue as well as more traffic for the company as its advertising has taken a blow. 

Companies that cater to the stay-at-home crowd with strong balance sheets are being rewarded. Big Tech market value now makes up 24% of the S&P 500 index, a gain of three percentage points higher than before the crisis. 

Fake meat maker Beyond Meat (BYND, +1.97%) reported its first-quarter revenue doubled from a year ago as the concept gains in popularity. 

The plant-based meat industry reported sales up 280% for March compared to a year ago. Sales are expected to double to more than $25 billion in the next five years. Still they only make up one percent of conventional meat sales. 

Major food makers including Tyson Foods (TSN), Kellogg (K) and Con Agra (CAG) have been developing their own products. 

Technically Speaking

  • S&P 500 Price action spent another week inching toward its 200-DMA
  • The 50-day SMA has turned north, though has a ways to go before any cross with the 200-day 
  • NYSE and NASDAQ action favored the bulls on all measures: volume, new highs, and advances.
  • Recently hot Biotech (IBB, +0.82%) slowed its pace, while Gold (GLD, -0.44%) and Gold Miners (GDX, -2.79%) pulled back from new highs for the week. 
  • Beaten sectors rallied Industrials(XLI,+7.37%) and Real Estate (XLRE, +5.55%) Energy (XLE, +6.92%)
  • Healthcare, -0.80%, was the only sector down for the week, while Consumer Staples was near breakeven, +0.14%.

BREAKOUTS 

BioCryst Pharmaceuticals Inc BCRX Biotechnology & Medical Research
Electronic Arts Inc EA Software & IT Services
ETSY Inc ETSY Diversified Retail
Fate Therapeutics Inc FATE Biotechnology & Medical Research
Glu Mobile Inc GLUU Software & IT Services
NetEase Inc NTES Software & IT Services
Novavax Inc NVAX Biotechnology & Medical Research
Ultragenyx Pharmaceutical Inc RARE Biotechnology & Medical Research
Schrodinger Inc SDGR Software & IT Services
Atlassian Corporation PLC TEAM Software & IT Services
2U Inc TWOU Software & IT Services
United Therapeutics Corp UTHR Biotechnology & Medical Research
Vertex Pharmaceuticals Inc VRTX Biotechnology & Medical Research
Wix.Com Ltd WIX Software & IT Services
Acceleron Pharma Inc XLRN Biotechnology & Medical Research
Zynga Inc ZNGA Software & IT Services
Zynex Inc ZYXI Healthcare Equipment & Supplies

BASES

Lots of basing patterns out there. Here’s a handful of top quality stocks in hot industry groups.

ACADIA Pharmaceuticals Inc ACAD Biotechnology & Medical Research
Autodesk Inc ADSK Software & IT Services
Advanced Micro Devices Inc AMD Semiconductors & Semiconductor Equipment
Biomarin Pharmaceutical Inc BMRN Pharmaceuticals
Amicus Therapeutics Inc FOLD Biotechnology & Medical Research
Gravity Co Ltd GRVY Software & IT Services
Nautilus Inc NLS Leisure Products

Amicus Therapeutics Inc. (FOLD, +9.31%)

  • Setup tight in a ten-month base, this Biotech is part of a hot sector.
  • Solid revenue, accumulation make it attractive.
  • Recent breakout from sector with Fate Therapeutics (FATE) could be the trailblazer for it.

Use your stops, play it safe.

Dan

All Talk

Quick Take: Sell Bias. There’s too much uncertainty in the market and markets hate uncertainty. 

Dear Readers:

Lots of heavy talk from leaders with relatively little reaction from stocks this week.

For the week, the Nasdaq, -1.17%, and the S&P 500, -2.26%, closed above their 20-day moving averages. Broad based selling came with higher than average volume creating churning.

The market is looking for signs of economic recovery as the world continues to slowly re-open from coronavirus quarantines.

Neither Fed Chairman Jerome Powell, who said, “the recovery may come more slowly than we would like, nor top White House infectious disease expert Dr. Anthony Fauci had much to offer in optimism.

There’s solid reason to sell. Famed market players including David Tepper, Stanley Druckenmiller and Carl Icahn have voiced their opinions of an overvalued market.

Reasons to buy are overall less convincing, though explain the run up in select stocks that have been pulling the market higher. Investors don’t buy on GDP predictions as much as they do earnings guidance.

The government has pumped more than three trillion dollars into the system, and unlike the financial crisis where rescue funds shored up reserves for balance sheets. This money going to circulate more throughout the economy.

Companies offering products and services compatible for staying at home are being rewarded, as are big stores that have stayed open as they take business that would have otherwise gone to smaller businesses forced to close.  

Technology shares remain a bright spot. The trend here is stay-at-home products and services, which is right in tune with the tech giants that have been leading stocks higher.

Amazon (AMZN) +1.27%, Apple (AAPL) -0.78%, Microsoft (MSFT) -0.82%, Netflix (NFLX) +4.28%, Google (GOOG) -1.09%. 

Biotech, $BTK +2.38% continues its advance out of a twenty-month-long base as funding pours in for remedies against coronavirus. Biotechs are coincidently the most shorted sector, followed by financial and healthcare. Don’t let that sway you – the herd often gets slaughtered. More on individual $BTK names below. 

The commodity Gold, GLD +2.19%, as well as Gold Miners, GDX +4.91%, also push to new highs as investors seek security from uncertainty. 

Earnings guidance remains a rarity given the too many unanswered questions for the rest of the year. There were no major earnings surprises for the week.

Economic data was predictably poor for the week. Most notably, retail sales fell more than 16% in April, which was more than expected as well as a record. 

Economic forecasts, though often wrong, will likely serve even less useful as economists surely can’t predict the coronavirus as well. 

Potential game changers include: Any positive news regarding coronavirus drug treatment. US tensions with China remain a threat to the market. 

Key Earnings announcement next week from: Nvidia (NVDA), which charged higher after breaking out last week, Walmart (WMT), Target (TGT) Home Depot (HD) Lowes (LOW)

TECHNICALLY SPEAKING

  • The S&P 500 is moving sideways below its 200-day SMA and above its 50-day SMA, a common experience after a quick rebound from a sharp sell-off as bulls and bears have been slaughtered.
  • Volume for the week tilted to the Bears with NYSE declining at +17B and advancing at +10B 
  • Overall volume pattern gives and edge to the Bears with three clear Distribution days in the past month. 
  • NYSE decliners, 2,538, beat out advancers 498.
  • There were 130 new lows and 73 new highs. 

GROWTH STOCK ACTION

Stock selection for this report focuses only on high quality companies that actually make money and are part of strong trending industry groups.

This week we have a selection of names from the Biotech, Software and Online Gaming groups. 

HIGH QUALITY BREAKOUTS

Novavax, Inc. (NVAX) is in the midst of a breakout while setup in a new multi-year base. This maker of a promising flu vaccine is also experiencing attention for its experience with developing a vaccine for the coronavirus. 

Its price has doubled since first mentioned on this report last month. 

Also in Breakout Territory Are:

ZYXI,ZNGA,WIX,VRTX,TWOU,TEAM,SE,RGEN,NVAX,NTES,NLS,GLUU,FOLD,ETSY,CAPR

HIGH QUALITY BASES

ACAD,AMD,AMGN,BMRN,CVM,DVA,FATE,GIGM,GRVY,PSTI,RARE,ROKU,SDGR,UTHR,XLRN

LAST WORDS

Perhaps online trading has taken over as an American pastime. E-Trade and Ameritrade reportED three times as much trading compared to a year ago. 

The founder of Barstool Sports has transformed into a day trader and is having his time in the financial media – reminds of characters in online brokerage commercials in the tech bubble era at the turn of the century.

Could these characters be responsible for the run-up in stocks?

Stay safe,

Dan