Top 10 Report – December 9, 2019

Market Conditions

The general market is healthy and making constructive progress to the upside.

Market Sentiment

General market volatility is low and the crowd is unemotional and even keeled.

Market Status

We are in a confirmed uptrend and looking to establish long positions in the highest quality leaders, as entry areas present themselves.

Market Insight

The most recent pullback in the general market was sharp and fast. The NASDAQ and S&P 500 briefly dipped below their 21-DMA’s before quickly recovering last week. Meanwhile, the DOW almost touched its 50-DMA and took a couple days longer to reclaim its 21-DMA. The Russell 2000 ended the week on a powerful note. The small-cap index was the only major index to trade above its most recent prior high on 11/27, although it is still nowhere near new all-time highs. Regardless, all four major indexes are in great shape.

The current uptrend in the general market continues to be supported by a broad base of leading growth stocks. The same sectors and industry groups that we’ve discussed in the last few reports continue to lead the way. One again, they were the technology, medical/biotech, retail, building, financial and transportation sectors.

The medical/biotech sector has been a pillar of strength underlying the current uptrend for quite some time now and it seems to be getting even more robust. For starters, it’s encouraging to see some of the large-cap names like AMGN, REGN and BIIB begin to show some life. Many of these stocks have underperformed for years now and so they have plenty of potential if rotation into these names continues.

It is also encouraging to see the sheer power being exhibited by many of the other names across the medical/biotech sector, both big and small. Some of which have been on an almost vertical trajectory higher. Not to mention, there are also plenty of sound bases setting up and looking ready to break out.

The tech sector is another huge area of the market showing notable strength. From the semiconductor stocks to the recently beaten down software stocks, there is no shortage of healthy, constructive bases forming across many groups in this sector and many others.

So, continue to keep track of the strongest stocks in the strongest groups, with the best fundamentals. Set your alerts and be ready to buy these stocks as entry areas present themselves.

The Indicies

The NASDAQ shook out constructively below its 23-EMA last week, then quickly recovered and finished the week just slightly below its recent all-time high.

The Russell 2000 shook out below its 23-EMA early in the week, bounced at logical support, and was the only major index to trade above its most recent prior high on 11/27 last Friday, although it is still nowhere near new all-time highs.

The S&P 500 shook out constructively below its 23-EMA last week, then quickly recovered and finished the week just slightly below its recent all-time high.

The DOW gapped below its 23-EMA early last week, but found support slightly above its 50-DMA, bounced and ultimately finished the week just slightly below its recent all-time highs.

Top 10 Stocks

Buy ADBE on a big volume move through $310.00 with a sell stop at its 23-EMA &/or on a constructive pullback to $302.05, with a sell stop at its 65-EMA. (Price Alert: $310.00)

Buy COUP on a big volume move through $155.14, with a sell stop at $144.87 &/or on a constructive pullback to $144.87, with a sell stop at its 65-EMA. (Price Alert: $155.14)

Buy CYBR on a big volume move through $124.67, with a sell stop at its 200-DMA. (Price Alert: $124.67)

Buy SE on a big volume move through $38.98, with a sell stop at its 23-EMA. (Price Alert: $38.98)

Buy SHOP on a big volume move through $376.91, with a sell stop at $349.44 &/or on a constructive pullback to $349.44, with a sell stop at its 50-DMA. (Price Alert: $376.91)

Buy CMG on a big volume move through $825.60, with a sell stop at its 65-EMA. (Price Alert: $825.60)

Buy PLNT on a big volume move through $74.90, with a sell stop at its 200-DMA. (Price Alert: $74.90)

Buy AMRN on a big volume move through $22.98, with a sell stop at its 23-EMA. (Price Alert: $22.98)

Buy CRSP on a big volume move through $74.00, with a sell stop at its 10-DMA. (Price Alert: $74.00)

Buy CUTR on a big volume move through $38.88, with a sell stop at its 23-EMA &/or on a constructive pullback to $35.85, with a sell stop at $33.65. (Price Alert: $38.88)

Buy DVA on a big volume move through $73.50, with a sell stop pat its 23-EMA. (Price Alert: $73.50)

Stocks on Deck

The following list of stocks may become actionable at any time. If and when these stocks actually trigger a legitimate entry area, they will be included in the chart section above. Ticker symbols in red indicate extreme risk.

FB – Constructive pullback to $198.09, sell stop 50-DMA. Long from $193.10 &/or $198.09 entry areas, sell stop 50-DMA.
FTNT – Pivot point $106.00, sell stop 23-EMA.
MELI – Pivot point $598.55, sell stop 200-DMA.
OLED – Pivot point $200.00, sell stop 200-DMA.
PYPL – Pivot point $108.4, sell stop 200-DMA.9
ACA – Constructive pullback to $39.32, sell stop 23-EMA. Long from $39.32 entry area, sell stop 23-EMA.
RACE – Pivot point $171.40, sell stop 23-EMA. Long from $167.50 entry area, sell stop 23-EMA.
IOVA – Constructive pullback to $24.12, sell stop 23-EMA. Long from $24.12 entry area, sell stop 23-EMA.
NEO – Constructive pullback to $26.48, sell stop 23-EMA. Long from $26.48, entry area, sell stop 23-EMA.
PGNY – Constructive pullback to $29.29, sell stop 10-DMA.
REGN – Pivot point $373.34, sell stop $363.00.
WST – Pivot point $151.15, sell stop 65-EMA.

Follow-up Commentary

Top 5 Follow-up Performers:

ALLK – Long from $92.84 entry area, sell stop $85.50.

BEP – Long from $36.51 &/or $37.94 entry areas, trailing stop 23-EMA.

CNNE – Long from $29.78 entry area, trailing stops for 12/ at its 10-DMA and ½ at its 23-EMA.

LULU – Long from $194.25, $204.44 &/or $209.02 entry areas, trailing stops 23-EMA.

PTON – Long from $27.98 entry area, sell stop for ½ at its 10-DMA and ½ at its 23-EMA.

AMD – Long from $35.55 &/or $37.18 entry areas, trailing stop 23-EMA.
CCC – Long from $17.80 entry area, sell stop 65-EMA.
CVNA – Long from $85.07 entry area, sell stop 50-DMA.
EPAM – Long from $201.00 entry area, sell stop 23-EMA.
PCTY – Long from $112.46 entry area, sell stop 23-EMA.
PING – Long from $21.00 entry area, sell stop $19.50.
SNPS – Long from $141.90 entry area, sell stop triggered below its 50-DMA on 12/2.
SONO –Long from $15.21 entry area, sell stop triggered below its 50-DMA on 12/2.
TDOC – Long from $73.13 entry area, profits taken below its 23-EMA on 12/2.
VEEV – Long from $157.28 entry area, stop triggered below its 200-DMA on 12/2.
BURL– Long from $209.60 entry area, sell stop 23-EMA.
CPRT – Long from $82.81 entry area, trailing stop 23-EMA.
LOCO –Long from $15.44 entry area, sell stop 23-EMA.
ACAD – Long from $44.10 entry area, trailing stop 23-EMA.
INCY – Long from $89.30 entry area, sell stop 23-EMA.
INSP – Long from $66.52 entry area, sell stop 23-EMA.
ISRG –Long from $569.98 entry area, sell stop 65-EMA.
RGEN – Long from $86.08 entry area, sell stop 65-EMA.
TXG – Long from $59.10 entry area, sell stop 23-EMA.



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December 8, 2019