Quick Take: Buyer’s Edge. Growth stock buyers on the prowl.
President Trump’s Tweets appeared to whipsaw the market this week after he gave up support for, then backtracked on economic stimulus negotiations with congress. You must wonder how the algo traders weathered that one.
We’re in the final weeks before the Presidential election. Expect more volatility.
|INDEX||WEEK CLOSE||CHANGE||% CHANGE||YTD %|
|Growth Stock Bias: BUYERS’ EDGE||Advances Declines For Week:NYSE 3.3, Nasdaq 3.8|
|Accumulation/Distribution Count For Month: S&P 500 5/5, Nasdaq 4/4||Advancing/Declining Volume For The Week:NYSE 1.9, Nasdaq 2.1|
It’s unclear if the market has a preference for the negotiations to continue. As of Friday, Trump said talks are on. McConnell has said it’s unlikely any deal would be made before the election.
The market may be more vulnerable to a contested election rather than a particular candidate winning or losing. Obama didn’t raise taxes when he took office during the financial crisis, Biden probably won’t, at first, either.
The V-shaped economic recovery is intact. The overall general data supports this. Though we’re still perhaps another year away from returning to pre-pandemic numbers as far as jobs and output.
What we want to see as Growth Stock investors is continued earnings success from companies benefiting from the environment. Funds buy businesses, not economies.
We’re in an environment of easy money from the Fed. Buyouts and mergers in effect. The hunt for yield is being played out in stocks.
|XLB||Materials Sector Fund||5.07|
|XLE||Energy Sector Fund||5.05|
|XLU||Utilities Sector Fund||4.6|
|XLK||Technology Sector Fund||4.56|
|XLV||Health Care Sector Fund||4.03|
|XLI||Industrial Sector Fund||3.99|
|XLF||Financial Sector Fund||3.83|
|XLY||Consumer Discretionary Sector Fund||3.45|
|XLP||Consumer Staples Sector Fund||2.56|
|XLC||Communication Services Sector Fund||2.15|
|XLRE||Real Estate Sector Fund||1.37|
Consumer Discretionary and Materials are the strongest horses in this race as they hits 52-week highs.
Technology (XLK, +4.56%) titans Alphabet (GOOG, +3.89%), Amazon.com (AMZN, +5.17%), Apple (AAPL, +3.49%), and Facebook (FB, +1.74%) are under political pressure after a House antitrust subcommittee accused them of holding monopoly power. The group recommended separating parts of their businesses.
Weakness from the group could weigh on this growth stock rally. Watch as these names wrestle with their 50-day moving averages, the technical outcome will be bullish looking new bases or bearish right shoulders.
Semiconductors (SMH, +7.8%) lit it up this week as key players reported and forecasted strong sales. news that Xilinx (XLNX, +17.89%) is in talks to be acquired by AMD (AMD, +1.59%) for $30 billion.
Retail is casting a positive vote for the broader market with the S&P Retail ETF (XRT, +5.36%) breaking out to a new high. The survivors get stronger. Big Lots (BIG, +10.67%) and Lowes (LOW, +4.05%) are climbing higher as they post great sales and earnings.
Healthcare (XLV, +4.03%) is just off a new high, being led by Biotech (IBB, +6.47%) as a number of companies possessing strong fundamentals breakout of bases. They’ve been included in The Growth Stock Report for months.
The Financials ETF (XLF, +3.83%) is recovering from technical brokenness. We’d expect it to fall back into bullish form for the market to have more durable strength in the long run.
Small caps are just shy of positive territory for the year as measured by the Russell 2000 Index.
At some point the money will flow to value-oriented stocks – but not now.
A sell off in the US Dollar has Gold benefiting as it looks to hold its head above an eight-year base breakout.
Square (SQ, 10.42%), an online payment company, grabbed headlines with its $50 million, purchase of the Bitcoin currency. That’s 1% of the company’s assets.
Bitcoin spiked 4% on the Square announcement. Speculation is more companies will invest in Bitcoin. ARK Next Generation Internet ETF (ARKW, +7.07%) bought into the Grayscale Bitcoin Trust (GBTC, +8.38%) they announced Friday. The 451, 179 shares they reported buying would be worth $5.3M at closing price Friday.
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.
|BPMC||Blueprint Medicines Corp.||Health Technology||Biotechnology||2X||+|
|FATE||Fate Therapeutics, Inc.||Health Technology||Biotechnology||3X||++|
|INSM||Insmed Incorporated||Health Technology||Biotechnology||2X||++|
|RARE||Ultragenyx Pharmaceutical, Inc.||Health Technology||Biotechnology||1X||++|
|SGEN||Seattle Genetics, Inc.||Health Technology||Biotechnology||4.3||++|
|TWST||Twist Bioscience Corp.||Health Technology||Biotechnology||4.3||++|
|XLRN||Acceleron Pharma Inc||Health Technology||Biotechnology||2X||++|
|FVRR||Fiverr International Ltd.||Technology Services||Data Processing Services||3X||++|
|ZEN||Zendesk, Inc.||Technology Services||Data Processing Services||4.3||+|
|ROKU||Roku, Inc. Class A||Consumer Durables||Electronics/Appliances||4.3||++|
|PFSI||PennyMac Financial Services, Inc.||Finance||Finance/Rental/Leasing||1P||++|
|EXPI||eXp World Holdings, Inc.||Finance||Financial Conglomerates||4.1||++|
|BYND||Beyond Meat, Inc.||Consumer Non-Durables||Food: Major Diversified||2X||+|
|FRPT||Freshpet Inc||Consumer Non-Durables||Food: Specialty/Candy||4.1||++|
|FIVN||Five9, Inc.||Technology Services||Information Technology Services||4.3||++|
|FSLY||Fastly, Inc. Class A||Technology Services||Information Technology Services||4.3||++|
|GLOB||Globant SA||Technology Services||Information Technology Services||4.1||++|
|NET||Cloudflare Inc Class A||Technology Services||Information Technology Services||4.3||++|
|NOW||ServiceNow, Inc.||Technology Services||Information Technology Services||4.1||++|
|SQ||Square, Inc. Class A||Technology Services||Information Technology Services||4.1||++|
|APPS||Digital Turbine, Inc.||Technology Services||Internet Software/Services||3P||++|
|FRHC||Freedom Holding Corp.||Finance||Investment Banks/Brokers||3P||++|
|PIPR||Piper Sandler Companies||Finance||Investment Banks/Brokers||4.1|
|PJT||PJT Partners, Inc. Class A||Finance||Investment Banks/Brokers||4.1||+|
|CDNA||CareDx, Inc.||Health Technology||Medical Specialties||4.3||++|
|NVCR||NovoCure Ltd.||Health Technology||Medical Specialties||4.1||++|
|PODD||Insulet Corporation||Health Technology||Medical Specialties||4.1||++|
|PRPL||Purple Innovation, Inc.||Miscellaneous||Miscellaneous||4.1||++|
|ETSY||Etsy, Inc.||Commercial Services||Miscellaneous Commercial Services||3P||++|
|PTON||Peloton Interactive, Inc. Class A||Consumer Services||Other Consumer Services||1X||++|
|AVLR||Avalara Inc||Technology Services||Packaged Software||4.3||++|
|DDOG||Datadog Inc Class A||Technology Services||Packaged Software||2P||++|
|ESTC||Elastic NV||Technology Services||Packaged Software||4.3||+|
|OKTA||Okta, Inc. Class A||Technology Services||Packaged Software||4.3||++|
|TWLO||Twilio, Inc. Class A||Technology Services||Packaged Software||4.3||++|
|ICLR||ICON Plc||Health Technology||Pharmaceuticals: Other||4.1||+|
|IIPR||Innovative Industrial Properties Inc||Finance||Real Estate Investment Trusts||1P||+|
|TRUP||Trupanion, Inc.||Finance||Specialty Insurance||4.1||++|
Picking a good stock to trade is one thing. Picking one for investment is another. The longer the hold time, the more in depth we get into the company’s business model.
More to come,