Here are some of the stocks we are watching this week.
1. Overstock (OSTK)
This is a monster stock that was on our radar last week. It often bounces off of the 9 EMA or 20 EMA. A great candidate for our momentum swing trading strategy. What you should look for is a dip to either the 9 or 20 EMA to buy it. This will work better if the dip is steady/controlled and on low relative volume. Overstock generally has a high short interest, making it a good candidate for a short squeeze.
2. Spotify (SPOT)
Refer to the notes on the chart. A low volume pull back shows that there isn't too much selling demand. A day or 2 hovering around current price before pushing up would be ideal. Stop loss for a long anywhere between $240-245.
3. Square Inc. (SQ)
Square stock is another monster that we had on our radar last week. It gapped up on earnings last week and has since dropped off, but the volume patterns are very bullish as you can see indicated in the chart. Big volume on up days. SQ generally bounces off the 20 EMA. Look for a gap fill and/or for the EMA to catch up to the price in order to go long.
4. Snapchat (SNAP)
This is the only bearish play in this post so look to go short. SNAP has formed a head and shoulders here on the daily chart with overhead resistance around $22 (entry point, stop loss just above that) and support around $20. SNAP has seen bigger volume on down days than up days recently which is generally bearish.
5. Cadence Design Systems (CDNS)
CDNS has bounced off the 20 EMA seven times in a row. We are simply looking for the 8th time in a row for continuation of trend. This is a momentum stock strategy candidate.
6. Industrial Sector ETF (XLI)
Holding a position in this one from around $72. It formed a cup and handle base which blew past $73 resistance. Previous resistance is now considered to be a support. Look for a small pull back to buy this, stop loss under $73, target $76 and then $80 eventually if $76 breaks.
7. Financial Sector ETF (XLF)
XLF has emerged from a base on increased volume. Currently holding a position from $24, but there is still a chance to go long if it dips to around $24.50 tomorrow. Minimum target $26.
8. S&P/TSX Capped REIT Index ETF (XRE.TO)
This is a Canadian ticker. It has been forming a base and consolidating in a relatively small range for quite a bit. I would not be surprised to see if make a decent sized move eventually. A long with a stop loss under the previous lows ($14.50-ish) and a target of $16 seems reasonable.
9. Dollar General Corp. (DG)
A slow mover, a great long-term investment, but also has a predictable chart as of right now. 50 MA has held as support so buying around that price should be good.
10. Tesla (TSLA)
Tesla stock is a crazy one as everyone already knows. It is in a tightening range that is bound to break out soon. Holding a small long position now that we would add to if it breaks out convincingly. Stop loss if it breaks down.