Top 10 Report – October 16th 2017

MARKET ANALYSIS AND SUMMARY

The major market indexes continued to make constructive progress Friday, supported by a healthy, broad group of high growth leadership. The distribution count fell to 6 days on both, the NASDAQ and S&P 500 and a solid wall of worry remains in place.

The line of least resistance is higher, so continue building long positions as entry point present themselves, however, slowly and with the utmost selectivity. As always, remember that “buying right” is critical, especially when the general market starts to whip around and you’re trying not to get shaken out of a big leader. Don’t buy a stock more than 1-2% past its pivot point and make a habit of eliminating laggards and taking at least partial profits on extended names.

THE INDICES

The NASDAQ exhibited stalling action and closed near its low for the day, despite finishing the session in the black and above its 4-EMA. Fortunately, volume declined, softening its negative price action.

Nasdaq Composite Index Chart

The Russell 2000 fell 0.17% as volume declined and closed below its 4-EMA and 10-DMA for the first time since 8/21.

Russell 2000 Chart

The S&P 500 exhibited stalling action and closed near its low for the day, despite finishing the session in the black and above its 4-EMA. Fortunately, volume declined, softening its negative price action.

S&P500 Index Chart

The DOW exhibited stalling action and closed near its low for the day, despite finishing the session in the black and above its 4-EMA. Volume declined, softening its negative price action.

Dow Jones Industrial Average Chart


STOCKS TO BUY

Buy BABA on a big volume move through $180.00, with a sell stop at its 50-DMA.

Alibaba Group Holding Limited Chart

Buy WB on a big volume move through $107.00, with a sell stop of 3-5%.

Weibo Corporation Chart

Buy BZUN on a big volume move through $37.00, with a sell stop of 5-7%.

Baozun Inc. Chart

Buy ATHM on a big volume move through $62.35, with a sell stop at its 65-EMA.

Autohome Inc. Chart

Buy NFLX using $189.70 as a guide for entry, with a sell stop at its 65-EMA.

Netflix, Inc. Chart

Prior entry areas and their associated sell stops for NVDA are discussed in the chart below.

NVIDIA Corporation Chart

Buy FB on a big volume move through $173.90, with a sell stop of 5-7%.

Facebook, Inc. Chart

Buy EVBG on a big volume move through $27.20, with a sell stop at $25.70.

Everbridge, Inc. Chart

Buy MRVL using $18.00 as a guide for entry, with a sell stop of 5-7% &/or on a big volume move through $18.60, with a sell stop of 5-7%.

Marvell Technology Group Ltd. Chart

Buy LPSN using $14.05 as a guide for entry, with a sell stop at its 50-DMA.

LivePerson, Inc. Chart

Buy PCTY using $49.00 as a guide for entry, with a sell stop of 5-7%.

Paylocity Holding Corporation Chart

Buy APPN using its 50-DMA as a guide for entry, with a sell stop at its 65-EMA.

Appian Corporation Chart

Buy TSLA using its 65-EMA as a guide for entry, with a sell stop of 2-3%.

Tesla, Inc. Chart

Buy GOOS using $20.62 as a guide for entry, with a sell stop at $20.00.

Canada Goose Holdings Inc. Chart

Buy CHGG on a big volume move through $15.65, with a sell stop at its 50-DMA.

Chegg, Inc. Chart

Buy RACE on a big volume move through $117.13, with a sell stop at its 50-DMA.

Ferrari N.V. Chart

Buy CLVS using $79.00 as a guide for entry, with a sell stop at its 65-EMA &/or on a big volume move through $85.56, with a sell stop of 5-7%.

Clovis Oncology, Inc. Chart

Buy ESPR using $53.00 as a guide for entry, with a sell stop at its 65-EMA &/or on a big volume move through $57.38, with a sell stop of 5-7%.

Esperion Therapeutics, Inc. Chart

Buy BIVV using $59.00 as a guide for entry, with a sell stop at its 65-EMA.

Bioverativ Inc. Chart

Buy ZLAB on a big volume move through $32.64, with a sell stop of 5-7%.

Zai Lab Limited Chart

Buy FOLD using $14.05 as a guide for entry, with a sell stop at its 65-EMA.

Amicus Therapeutics, Inc. Chart

Buy INVA on a big volume move through $14.20, with a sell stop of 5-7%.

Innoviva, Inc. Chart

Buy IONS on a big volume move through $59.80, with a sell stop of 5-7%.

Ionis Pharmaceuticals, Inc. Chart

FOLLOW-UP COMMENTARY

The following list of stocks have triggered valid entries and are in the middle of a move, where other than sell stops, there is nothing else actionable to discuss.

PYPL – Traders long from the $54.55 entry area can maintain a sell stop at its 50-DMA. Profits could have taken on 1/2 below its 21-DMA on 8/10. Traders that recently purchased it off of its 21-DMA (roughly $59.50) can maintain a trailing sell stop for 1/2 at its 21-DMA and 1/2 at its 50-DMA.
GOOGL – Traders long from its 50-DMA (roughly $946.40) can maintain a trailing sell stop at $960.00. Traders long from $1,006.00 can maintain a sell stop at its 10-DMA.
MU – Traders long from the $31.00 entry area could have taken profits on 1/2 below its 10-DMA on 9/25 and can maintain a trailing sell stop at its 21-DMA &/or 65-EMA.
UCTT – Traders long from the $25.00 and $26.00 entry areas can maintain a trailing sell stop for 1/2 at its 21-DMA and 1/2 at its 65-EMA.
STM – Traders long from the $17.34 entry area can maintain a trailing sell stop for 1/2 at its 21-DMA and 1/2 at its 50-DMA.
ICHR – Traders long from the $25.10 entry area can maintain a trailing sell stop for  1/2 at its 10-DMA and 1/2 at its 21-DMA.
SQ – Traders long from the $24.50 and $24.83 entry areas could have taken profits below its 10-DMA on 7/27. Maintain a sell stop at its 65-EMA. Traders long from the $27.70 entry area can maintain a sell stop for 1/2 at its 10-DMA and 1/2 at its 65-EMA.
TTD – Traders long from $57.57 can maintain a sell stop for 1/2 at its 21-DMA and 1/2 at its 65-EMA.
SGH – Traders long from the $17.25 entry area could have already taken profits on 1/3 to 1/2 of the position in the $23.00 area, starting on 9/8. Some may have used its 10-DMA as a trailing sell stop on 9/15. Profits could have been taken below its 21-DMA on 9/26. Maintain a trailing sell stop at its 50-DMA &/or its 65-EMA for any shares remaining.
CTRL – Traders long from the $24.40 entry area could have taken profits on 1/2 below its 10-DMA on 9/25. Maintain a trailing sell stop at its 21 &/0r 50-DMA’s.
CRCM – Traders long from the $16.50 entry area can maintain a sell stop at its 50-DMA.
YY – Traders long from the 80.60 entry can maintain a trailing sell stop for 1/3 to 1/2 at its 10-DMA and a sell stop at its 50-DMA for the balance. Traders long from the $76.50 entry area can maintain a sell stop for 1/2 at its 21-DMA and 1/2 at its 50-DMA.
SINA – Traders long from any of its prior entry areas could have taken profits on 1/2 below its 21-DMA on 10/9. Maintain a trailing sell stop at its 50-DMA. Active traders could have used it 4-EMA to take partial profits on 9/15.
HTHT – Traders long from the $115.00 entry area can maintain a sell stop for 1/2 at its 21-DMA and 1/2 at its 50-DMA.
AZUL – Traders long from the $25.99 entry area could have taken profits on ½ below its 21-DMA and can maintain a trailing sell stop for the other ½ at its 50-DMA.
SODA – Traders long from the $63.25 entry area can maintain a sell stop at its 65-EMA.
CELG – Traders long from the $139.00 entry area could have taken profits on 1/2 below its 21-DMA and were stopped out of any remaining shares below its 65-EMA on Friday.
PBYI – Traders long from the $98.00 entry area can maintain a trailing sell stop for 1/2 at its 21-DMA and 1/2 at its 65-EMA.
ONCE – Traders long from the $79.50 entry area can maintain a trailing sell stop at its 50-DMA.
BGNE – Traders long from the $78.50 entry area could have taken profits on 1/2 below its 10-DMA on 10/12 and 1/2 below its 21-DMA on 10/13.
AVXS – Traders long from the $86.00 entry area could have taken profits on 1/2 below its 10-DMA on 8/10 and 1/2 below its 21-DMA on 8/30. Traders still long can maintain a sell stop at its 65-EMA.
CORT – Traders long from $12.00 could have taken profits on 1/2 below its 21-DMA on 10/10. Maintain a sell stop at its 50-DMA.
IRTC – Traders long from the $38.50 entry area could have taken profits on 1/2 below its 21-DMA on 10/9.  Maintain a trailing sell stop at its 50-DMA.
ABEO – Traders long from the $10.00 entry area could have taken profits on 1/3 to 1/2 the position below its 10-DMA on 9/22 and then on the balance of the position below its 21-DMA ($16.93) on 10/13.
VRTX – Traders long from the $156.65 entry area were stopped out below $152.00. Traders long from the $120.73 entry area could have taken profits on 1/2 below its 10-DMA starting on 7/31. Maintain a trailing sell stop at its 65-EMA.
SRPT – Traders long from the $47.96 entry area can maintain a sell stop for 1/2 at its 10-DMA and 1/2 at its 21-DMA.
CALA – Traders long from the$17.25 entry area can maintain a sell stop of 5-7%.
GLYC – Traders long from the $12.50 entry area could have taken profits on 1/2 below $13.00 on 10/9 and were stopped out of the balance below its 65-DMA on 10/13.

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.

OLED – Guide for entry $130.65, sell stop 5-7%
YELP – Guide for entry 50-DMA, sell stop 2-3%
RDFN – Pivot point $28.60, sell stop 5-7%
WUBA – Pivot point $68.00, sell stop 5-7%
NTES – Pivot point 200-DMA, sell atop 50-DMA
ROKU – Pivot point $29.80, sell stop 5-7%
SNAP – Guide for entry $15.80, sell stop $14.80
RP – Pivot point $43.65, sell stop 5-7%
DESP – Guide for entry $33.40, sell stop 5-7%
KORS – Guide for entry $46.26, sell stop 50-DMA
KALA – Pivot point 21-DMA, sell stop $22.00
ARRY – Guide f or entry $12.00, sell stop 5-7%
COOL – Guide for entry 50-DMA, sell stop 2-3%
TCMD – Pivot point 50-DMA, sell stop 2-3%

October 16, 2017

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