Top 10 Report – October 18th 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 held up in a tight range above its 4-EMA and closed just a hair below recent all-time highs as volume picked up from the day before.

Nasdaq Composite Index
Nasdaq Composite Index Chart

The Russell 2000 continued to drift below its 10-DMA as volume expanded, although it closed well above its 21-DMA and only slightly below recent all-time highs.

Russell 2000
Russell 2000 Chart

The S&P 500 crept marginally higher as volume on the NYSE declined yesterday, although it was enough for it to finish the session at a new, all-time closing high.

S&P 500
S&P500 Index Chart

The DOW rose 0.18% as volume expanded and finished the session at a new all-time high.

Dow Jones Industrial Average
Dow Jones Industrial Average Chart




THE STOCKS

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  using its 50-DMA as a guide for entry, with a sell stop at its 65-EMA &/or on a big volume move through $105.50, with a sell stop at its 50-DMA.

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 $63.00, with a sell stop at $61.00.

Autohome Inc. Chart

Buy WUBA on a big volume move through $68.85, with a sell stop of 5-7%.

58.com Inc. Chart

Buy SINA on a big volume move through $119.20, with a sell stop of 5-7%.

SINA Corporation Chart

Buy YELP using its 50-DMA as a guide for entry, with a sell stop at $41.60.

Yelp Inc. Chart

Buy FB using $173.90 as a guide for entry, with a sell stop at its 50-DMA &/or 65-EMA.

Facebook, Inc. Chart

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

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

Everbridge, Inc. 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 TDOC on a big volume move through $35.00, with a sell stop at its 65-EMA.

Teladoc, Inc. Chart

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

Tesla, Inc. Chart

Buy RACE on a big volume move through $117.83, with a sell stop at its 50-DMA.

Ferrari N.V. Chart

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

Chegg, Inc. 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 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 IONS using $60.00 as a guide for entry, with a sell stop of 5-7%.

Ionis Pharmaceuticals, Inc. Chart

Buy RDFN on a big volume move through $28.60, with a sell stop at $26.50.

Redfin Corporation 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.
NFLX – Traders long from its 50-DMA (roughly $166.50) and its $189.70 entry area can maintain a sell stop for 1/2 at its 21-DMA and 1/2 at its 65-EMA.
GOOGL – Traders long from its 50-DMA (roughly $946.40) and from the $1,006.00 entry area 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 65-EMA.
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 stops at its 10-DMA, 21-DMA &/or 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.
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 65-EMA.
GOOS – Traders long from the $20.62 entry area can maintain a sell stop at $20.00.
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.
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 $97.00.
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.
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%.
INVA – Traders long from the $14.20 entry area can maintain a sell stop at its 65-EMA.
FOLD – Traders long from its $14.05 entry area can maintain a sell stop at its 50-DMA.

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 65-EMA
CAVM – Pivot point $70.10, sell stop 200-DMA.
BSTI – Pivot point $13.25, sell stop 5-7%
WUBA – Guide for entry $69.50, sell stop $66.00
ROKU – Pivot point $29.80, sell stop 5-7%
SNAP – Guide for entry 65-EMA, sell stop 50-DMA
SODA – Pivot point $63.25, sell stop 65-EMA, Traders already long from the $63.25 entry area can maintain a sell stop at its 65-EMA.
ARNA – Pivot point $27.86, sell stop 5-7%
JUNO – Pivot point $47.00, sell stop 5-7%
ZGNX – Pivot point $41.55, sell stop 3-5%
MRTX – Pivot point $15.00, sell stop 3-5%

October 18, 2017

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