Major averages rose on slightly higher volume finishing near the top of their respective trading ranges. Note how quickly market averages turned on a dime from most of them trading under their 50-day moving averages just last week to approaching or achieving new highs over just the last two days. This speaks to the highly challenging nature of this environment and also is why keeping stops tight and taking profits in context with a stock's chart is key. Our VoSI VooDoo Reports which cover Volume Dry-Up and Undercut & Rally type set-ups help one enter a quality stock with minimal downside risk.
Focus List Review
AMZN posted a pocket pivot yesterday along the 10-dma and the $900 price level. Earnings are expected on Thursday after the close.
BZUN has regained its 50-day moving average on slightly above-average volume. This puts the stock in a lower-risk entry position using the 50-dma as a tight selling guide. Beware that the last few days are taking on a wedging appearance.
NFLX broke out on big buying volume that was 280% above-average. The top of the prior base is 148.29, so yesterday's close at 152.16 keeps the stock within buying range.
SNAP is holding tight along its 20-dema, and yesterday's pullback to the 10-dma served to correct the slight wedging action it was showing previously. The stock acts well and appears to be setting up for a move higher.
SQ broke out of an eight-week base on a pocket pivot volume signature that was also 12% above average.
TSLA posted a pocket pivot at its 10-dma on volume that was 13% above average.
VEEV pulled in slightly on a voodoo volume signature that was -41% below average. The stock is currently about 1% above its 10-dma, so is within buying range of last Friday's pocket pivot.