Helmets Ready

Helmets Ready

BUYER’S EDGE

For the week, there little to suggest this bull market is done. Pullbacks on lighter volume across the sectors is exactly what buyers want to see. 

Election is a week from Tuesday. Get your helmets ready, there’s no telling what bombs may go off as politics heats up. 

Breadth and thrust trends remain Bullish.

Weekly Advancing/Declining Volume NYSE: 1.3, NASDAQ: 1.2
Accumulation/Distribution Count, 20 DaysS&P 500: 5/4, NASDAQ: 3/2
Weekly Advances/Declines, IssuesNYSE: 1.2, NASDAQ: 0.9
New HighsNYSE: 200 (-35%), NASDAQ: 245 (-37%)
New LowsNYSE: 76 (+27%), NASDAQ: 120 (+46%)

TOP DOWN, SECTOR PRICE ACTION & NEWS ANALYSIS

ETFNAME% CHG40WEMACHART
XLCCommunication Services Sector 2.19Trend up. 5% off 52-wk high. 
XLUUtilities Sector 1.17Trend up. 10% off 52-wk high. 
XLFFinancial Sector 1.04Rangebound. 24% off 52-wk high. 
XLEEnergy Sector 0.66Downtrend. 25% off 52-wk low. 
XLYConsumer Discretionary Sector 0.09Pullback. 2% off 52-wk high.
XLVHealth Care Sector -0.09Pullback. 2% off 52-wk high.
XLBMaterials Sector -0.41Pullback. 2% off 52-wk high.
XLIIndustrial Sector -0.53Pullback. 5% off 52-wk high.
XLPConsumer Staples Sector -1.18Pullback. 3% off 52-wk high.
XLREReal Estate Sector -1.33Rangebound. 30% off 52-wk low,
XLKTechnology Sector -2.21Pullback. 8% off 52-wk high.

Look for Financials to trend higher to validate the bull.

Higher bond yields made headlines as Financials ETF (XLF, %), as Regional Banks (KRE, Retail ETF (XRT, +8%) soared higher along with the bigger Banks (KBE, +6.43%)

JPMogan (JPM, +2.27%) is entering the mobile payments business, allowing customers to charge credit cards with a contactless reader. The space was pioneered by Square (SQ, -5.14%) and PayPal (PYPL, -0.69%), who announced it will be allowing its customers to buy and well with cryptocurrencies like bitcoin. 

A pause in Big Tech leadership threatens to pull it all down. This sector is the relative strength king since the rally off the March lows.  

The Technology (XLK, -2.21%) was the biggest losing sector of the week as Apple (AAPL, -3.34%) pulled back on lighter volume amidst uncertainty over iPhone 12 release date and earnings guidance. Microsoft (MSFT, -1.56%) trades in like fashion. 

Watch the 50-day moving averages for support, as it would be typical to see some type of high-volume battle here. 

Semiconductors (SMH, -0.10%) are holding a nice, tight pull back to its up trending 20-DMA. Strength here is always good for the market in general. 

Communication Services (XLC, +0.75%) was the strongest sector for the week. 

Facebook (FB, +7%) will report earnings Thursday, and is expected to report strong ad revenue like its peers. Meanwhile, Alphabet (GOOG, +4.32%) said it will fight back against antitrust suits filed against it in 11 states. 

Netflix (NFLX, -1.60%) added 2.2 million subscribers for the third quarter, well below the 16 million and 10 million in the first and second quarters. 

Snap (SNAP, +55%) soared above its 2017 IPO price for a base breakout on news of higher revenue. The Internet Content industry fired up over the news, with Pinterest (PINS, +20.29%), Twitter (TWTR, +10%) and Spotify (SPOT, +8%,) 

Tesla (TSLA, -4.33%) is holding its base after saying it was on target to sell half a million cars this year. The electric car maker has been profitable for five quarters in a row. Production is in the works for its self-driving taxis. 

Healthcare (XLV, -0.09%) was quiet as Biotech (IBB, -2.30%) retreated for the second week in a row. CRISPR Therapeutics (CRSP, -15.64%) had a major about face on heavy selling, no news. 

Gilead Sciences (GILD, -1.95%) hit a seven-year low as its Covid-19 treatment drug remdesivir approved by the FDA. Not good. 

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 NameIndustryGRADEDEMAND
FOLDAmicus Therapeutics, Inc.Biotechnology4X++
EXASExact Sciences CorporationBiotechnology2X 
FVRRFiverr International Ltd.Data Processing Services3X++
ZENZendesk, Inc.Data Processing Services4X++
ROKURoku, Inc. Class AElectronics/Appliances4X++
PFSIPennyMac Financial Services, Inc.Finance/Rental/Leasing1P++
BYNDBeyond Meat, Inc.Food: Major Diversified2X+
ZZillow Group, Inc. Class CInformation Technology Services2X++
SQSquare, Inc. Class AInformation Technology Services4P++
NETCloudflare Inc Class AInformation Technology Services4X++
APPSDigital Turbine, Inc.Internet Software/Services3P++
SNAPSnap, Inc. Class AInternet Software/Services4X++
NVCRNovoCure Ltd.Medical Specialties4P++
ETSYEtsy, Inc.Miscellaneous Commercial Services3P++
PTONPeloton Interactive, Inc. Class AOther Consumer Services1X++
ZMZoom Video Communications, Inc. Class APackaged Software1P++
CRWDCrowdStrike Holdings, Inc. Class APackaged Software1X++
DDOGDatadog Inc Class APackaged Software2P++
VEEVVeeva Systems Inc Class APackaged Software4P++
OKTAOkta, Inc. Class APackaged Software4X++
TEAMAtlassian Corp. Plc Class APackaged Software4X++
TWLOTwilio, Inc. Class APackaged Software4X++
IIPRInnovative Industrial Properties IncReal Estate Investment Trusts1P++
GRUBGrubhub, Inc.Specialty Stores4X+