Major averages finished yesterday mixed but near the flatline but near the top of their trading ranges on higher volume, a sign of support. After a bout of early morning weakness, markets rallied for the rest of the day.
Focus List Update
After a number of volume dry-up (VDU) days, both MOMO and BABA moved higher. MOMO had the normal 10-day pocket pivot while BABA had a 5-day pocket. BABA posted a five-day pocket pivot off of the 10-day line. It was quite buyable, however, closer to the 99.94 intraday low of its late January BGU over the past several days, so action should have been taken at that time. MOMO posted another pocket pivot yesterday at its 10-day line, but has also broken out of the handle of a cup-with-handle base.
Z gapped lower at the open and, as suggested in yesterday's PMP, should be sold. Stocks that gap lower should be sold at the open.
AMZN has regained its 20-dema on light volume. The stock is less than 4% away from its all-time highs and so cannot be considered to be "broken." Look for tight action to develop along the 20-dema as a possible entry point.
CUDA found ready support at the confluence of its 10-day and 20-dema lines yesterday and remains in a buyable position using the 50-day line as a maximum selling guide.
FB found support at its 10-day line yesterday on above-average volume. It is now attempting a re-breakout and is buyable using the 10-day or 20-dema lines as tight selling guides.
FCX is sitting on top of its 50-day line - this would represent your maximum selling guide if it breaks.
MOS is finding support along its 10-day and 20-dema lines.
NFLX remains within buying range of Tuesday's pocket pivot, using either 10-day or 20-dema lines as selling guides.
QTNA looks to be setting up along its 50-day line - it has posted two five-day pocket pivots over the past five trading days.
SQ continues to find support at its 50-day line. It is in a lower-risk entry positon here using the 50-day line as a selling guide.
VEEV is holding tight along its 50-day moving average as volume dries up sharply. This puts it in a lower-risk entry position using the 50-day line OR the recent lows just under the 42 price level as selling guides.
X is holding tight just above its 50-day line after posting a pocket pivot last Friday. This is in a buyable position using the 10-day or 20-dema lines as selling guides.