Major averages fell yesterday on mixed volume. While volume was larger for the NASDAQ Composite, it was only slightly higher than the prior day and below average. Nevertheless, this is the third distribution day for the index over the last 9 trading days as the market continues to digest gains. We have, however, seen a number of breakdowns in formerly leading stocks, and strong, trending action remains a rare occurrence as choppy movement remains the rule of the day.
Focus List Update:
MOMO had a buyable gap up after reporting strong earnings.
THO gapped lower on weak earnings. As we have always advised, such a gap lower should always be sold at the open. Ask questions later.
FTNT, CUDA, BOX, GKOS are coming off the list. We continue to monitor names such as GKOS even after we remove them as the stock, as an example, holds big earnings potential over the next 2 years, plus its overall price pattern is strong. So it could easily set up as an actionable stock once again.
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