#IBDPartner
Market at highs trending on upper Bollinger Bands mean that trends are strong but new entries are tough to find. If you are riding a swing, fantastic, be patient. If you are looking for a new entry and don’t want to chase up — well, that’s more difficult. We looked through IBD50 scan in MarketSmith for new ideas and this is what we came up with:
Most stocks in the IBD 50 look fantastic, but they all look like continuation moves on high trends, not set-ups for new bases. But we did find some potential candidates. Let’s review:
At #13 we have KEM (Kemet- Electronic Parts) with a decent base at 27. Under the 50sma right now so not much interest until it gets near 27 for potential breakout.
BZUN at IBD #38 (Baozun Inc – Computer Sftwr-Enterprise) in one of the hottest sectors of the year up 47% YTD. BZUN earnings in August disappointed but stock found support on the 200sma. However, last week the descending 50sma acted as resistance — if it can get over and into the 58 range we’d get interested long. No interest in buying weakness on this stock.
MA (Mastercard, #36) is one of our current swings we talked about in our previous post, long on the 206 breakout. Great example of most of the stocks we are seeing right now: gorgeous trend, but no entry right here without chasing. However if you are already long like we are, well, then just trail stops and sit.
Financials are starting to look interesting and we have our eye on SIVB (#27 in IBD 50 list). As you can see in the MarketSmith pattern recognition — we have a flat base here which breaks out near 334.
We traded NFLX last week (#14 on IBD list) on the 50sma breakout at 368 but we didn’t have enough cushion to swing it into the long weekend. However, sometimes (actually quite often) it takes us two tries to get it right and NFLX stays on the list. We are looking for a move away from that 50sma.
Add these IBD 50 ideas to your lists — getting to be a challenge out there finding new entries in this runaway tape. See you on the streams. HCPG