Major averages finished roughly flat on mixed volume. With the VIX a breath away from all-time lows and the NASDAQ Composite up for the tenth day in a row, odds would seem to favor a pullback, if even a mild one. Futures are mildly lower at the time of this writing.
Focus List Notes
Most names on the list are extended and not in a lower-risk buy positions. We would maintain some caution in light of this and not seek to chase stocks on the upside.
LITE has dipped below its 10-dma and 20-dema and appears headed for a test of its 50-dma. Considering that AAOI reversed yesterday after getting more than 20% extended beyond its own 10-dma, the optical names may be headed for a pullback here. Proceed with caution!
NOW is sitting at its 10-dma, which could be considered a lower-risk entry point, but earnings are expected next week. This presents an obstacle to taking a position here ahead of earnings since we prefer to NOT play "earnings roulette."
VEEV is holding at its 10-dma with volume declining.
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