Indexes continue to sloppily trudge higher, with the NASDAQ Composite Index less than 1% away from its all-time highs. The odd paradox is that we see very few new long situations, which may or may not be a cautionary signal. What it does mean is that we prefer to maintain reasonable amounts of dry powder and wait for more compelling new situations to arise. This is primarily why we have not been sending out reports on actionable names. It is not clear to us that there is currently much out there worth acting on, at least at this phase in the middle of summer and towards the end of "earnings roulette" season. That said, two of our Focus List names are currently in potentially lower-risk entry positions, per our notes below.
Futures are mildly higher at the time of this writing. China’s Ministry of Commerce on Wednesday criticized the U.S.’s plan to impose new 25% tariffs on $16 billion in Chinese goods on Aug. 23, and released an updated list of items it would target with similar tariffs that would go into effect the same day. “This is very unreasonable,” the ministry said. “In order to defend China’s rightful interests and the multilateral trade system, China has to retaliate as necessary.”
Focus List Notes:
AMZN posted a new all-time high yesterday. It remains out of buying range.
BZUN is now living below its 50-dma. Based on its inability to hold first the 20-dema and then the 50-dma, this was a sell some time ago.
FTNT has moved tight sideways in a short four-day flag since last Thursday's buyable gap-up move after earnings. We would look for pullbacks closer to the intraday low of the BGU day at 70 as lower-risk entries from here, although the stock remains within buying range of the original BGU, using 70 as a tight selling guide.
NFLX has bounced off support and is now running into resistance along the lows of the prior bear flag it formed following its post-earnings gap-down break. This was also a sell some time ago when it failed to at least hold the 50-dma.
SQ is holding tight along its 10-dma and 20-dema with volume declining after posting a pocket pivot following earnings last Thursday. This puts the stock in a lower-risk entry position
Market Lab Report - Market Pulse for Thursday, August 9, 2018
|Published:||9 Aug 2018 06:43 ET|
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