Month: February 2019

Three Stocks Setting Up for A Potential Breakout – NFLX, ISRG, DLTR

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December retail sales came at -1.2%, which is the worst drop in nine years. The market didn’t care much. Dip buyers stepped up and bought the dip in many technology, energy, and healthcare stocks. Positive reaction to bad news is a sign of confidence and optimism. Sentiment and momentum are what matter the most to traders because the market is a voting machine in the short-term.

Here are three stocks in a tight range contraction, which might lead to a breakout and another leg higher:

Check out my latest book: Swing Trading with Options – How to trade big trends for big returns.

Momentum Monday – About that 200-day Moving Average

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Unsurprisingly, the first test of SPY’s and QQQ’s 200-day moving averages has led to a slight pullback, but under the surface, we continue to see predominantly positive market action. The market is reacting favourably to earnings reports. Dip buyers are still eager to scoop pullbacks in strong momentum stocks.

In today’s Momentum Monday, we went over some setups in enterprise software, cybersecurity, communication devices, medical instruments, biotech, aerospace.

Check out my latest book: Swing Trading with Options – How to trade big trends for big profits.

Stocks Setting Up for a Potential Breakout – Feb 10

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SPY and QQQ had a minor pullback once they reached their 200-day moving averages, but under the surface we continue to see mostly positive  price action. Dip buyers continue to be firmly in charge. Momentum stocks are still breaking out and holding their earnings gaps.

Here are a few anticipation setups for next week in stocks with very high relative strength: NOW, GHDX, AMRN, BHVN, etc.

Check out my latest book: Swing Trading with Options – How to trade big trends for big profits.