One publication that I often check out on Saturday is Investor’s Business Daily. The newspaper provides a list of its IBD 100 list. For those not familiar with IBD, I think it is fair to call the IBD 100 list a list of bullish momentum stocks. It can therefore be a good spot to find some very bullish stocks as well to find stocks that are losing their momentum and becoming short candidates. There are many weeks that I don’t find much, but other times I get several ideas from flipping through the IBD 100.
IBD breaks stocks into various groups making it easy to spot subsector trends in the market. Typically I’ll go through the list and look for groups which are on the list multiple times. This week, group 23 (software) appears on the list six different times. If six different stock from that group are listed in the IBD 100, it makes me want to pull charts on this subsector to see if any of the stocks in the group are tradeable.
I’ve gone through their list, and this is what looks actionable to me this week.
VMW has a clean break over resistance at $42. We didn’t get volume on the breakout and momemtum on RSI may break 70. If the general market is still trending higher, this one is worth a shot long at $42. It looks like there is a good chance we’ll get the support bounce (and perhaps the volume will come on the retest). Earnings is coming on the 21st so keep that in mind.
BIDU looks like it might be ready to break its all time high. I’ll be looking to get in on a breakout over $420.
DDRX is the cleanest one I have mentioned so far. A lot of volume has been coming into this stock for months now. $25 has been the ceiling. I’ll be getting long if it can break through resistance and make a new all time high.
A little breakout on GIVN. I like an initial entry right here.
Stocks on the list that are above their all time high and worth watching: ARO, SCL, WIT