As the latest rally remains confirmed, growth stocks remain in favor. Sanchez Energy (SN) was just added to our watch list in last week’s Sunday Stock Report. Less than two sessions later it traded aggressively higher +3.4% with a +73% increase in volume. That bullish action triggered our technical buy signal, and this leader then became the newest addition to our portfolio.
Today shares of this oil and gas explorer blasted to new highs, adding to gains from our $24.84 buy price. Premium Members first saw this leader as it was just featured the latest Sunday Stock Report, when it was being added to our high-ranked watch list. That watch list included just six of the best stock set ups that I could find during my weekend screening ritual.
On Tuesday shares of Envestnet, Inc blasted to new all-time highs with a +78% increase in volume. That bullish action triggered a technical buy signal for any current Premium Members who had an interest in this selection. ENV was first added to our watch list on Aug 8th with a trigger price of $27.76. Since then it has been continually noted in my weekly Sunday Stock Reports with positive comments such as – “…little resistance in the way of possible further gains.” and “Continues trading just off of all-time highs, as its ranks remain solid.”
We have now entered into this stock on the breakout and are properly positioned. By doing so we have the highs of the most recent base and then the 50 or 200 day moving averages that will offer support. This is coupled with a discipline to get out of a trade before any losses may get out of hand.
This is how… I have been doing it, and how I’ve have seen it happen personally over-and-over again for more than 10 years. These stocks start off as “set ups” on our watch list. If the market is right, then most break out, triggering their individual buy signals. If there are no breakouts, then we remain in a cash position awaiting a proper buy signal to emerge. By default this helps to keep us more in stocks during the better bull cycles and out during pullbacks when a rally may be under pressure.
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Thursday’s +3.6% gains with above average volume to a new high close were impressive. JAZZ was continually noted as one of our strongest selections. Ranks remain stellar with very good volume patterns. With that bullish action we can now raise our 1st SUPPORT level to $82. Below there is the 50 DMA currently at $78.97.
Today marked day 8 of the latest rally attempt and the Nasdaq has now officially confirmed a new uptrend. Stocks from your watch list are again buyable, while following the proven, winning guidelines.
Three of our current holdings acquired during the previous rally, MX , EVR and YNDX actually broke out again. So, we have now raised their respective fist support levels up, helping us to hopefully capture more profits in the event of a pullback. Premium Members can reference those price points along with other specific trading criteria on all of our selections in the table below. The remainder of our holdings such as JAZZ, TRIP, PKG, and the aforementioned SSYS continue, for the most part, to perform rather well technically, while maintaining their high ranks and, at the least, decent fundamentals.
We currently have five stocks on our watch list of high-ranked buy candidates that are setting up technically in proper bases of consolidation. This means that they have the winning characteristics which we are all looking for. Including such chart patterns as a cup with handle, flat base, double bottom base, etc. History has shown that when these stocks are posted as set ups, they are poised for a breakout!
It was a better week for stocks as all the major averages made gains. The Nasdaq Composite advanced the most, capping the shortened trading week +2.0%. The New York Stock Exchange came in a close second with a +1.8% gain, followed by the benchmark S&P 500 Index which added+1.4%. The lagging Dow Jones Industrials ended up +0.8%.
As the market made gains, volume was stronger for most of the week, and that is encouraging as we await a proper Follow-Through Day. Also, the 52 week high versus 52 week low list is looking better. However, the Dow, as well as the S&P 500 and the NYSE Composite all remain below their respective 50-day moving averages. The leading Nasdaq looks the best technically with its recent and successful test of its 50 DMA, coupled with this week’s advance, which put this tech index within less than 1% of decade old highs.