(Editor’s Note: Gil Morales is recuperating from minor surgery. Kevin Marder wrote this abbreviated report after consulting with Gil. Gil will be writing Sunday’s report as usual.)
Gil notes that a lot of things that were moving now seem to have stalled. This may be due to August seasonal slowness more than anything else.
Gil says, “The general market remains, as I wrote over the weekend, as being in something of a sedated state. The NYSE-based indexes lag while the NASDAQ is bolstered by Apple (AAPL) and its bottom-fishing moves through both the 50-day moving average in July and the 200-day moving average yesterday. AAPL was mentioned in my report of July 24 as a bottom fishing pocket pivot. This was discussed again in my weekend report of July 28. The stock is extended currently and should not be touched. One thing I would be looking for is a pullback to the 200-day line.”
“Meanwhile Google (GOOG) continues to live below its 50-day moving average while Amazon.com (AMZN) moves down to test its 50-day moving average.
“3D Systems (DDD) and Stratasys (SSYS) are taking the lead among the 3-D printing stocks as Exone Company (XONE) got plastered today after missing on earnings yesterday.
“In my view, DDD and SSYS remain the more viable names given their technical action and the fact that they are both making concerted moves into the retail 3-D space. This could make the difference with respect to their future success.
“Over the weekend I discussed LinkedIn (LNKD)‘s action as it held in tight for five days before moving higher on Monday. The stock moved above the 142 level before backing down today. This is not the type of action I want to see coming off a buyable gap-up move and then a five-day tight flag on the daily chart. This should be trying to sustain an upside move from here.”
“I also discussed Tesla Motors (TSLA) and the fact that it was 150% above its 200-day moving average. In my view, this made last week’s buyable gap-up somewhat more risky, although it was buyable. Since then, the stock has blown below both the 150.46 level as well as any and all additional “porosity” that one might allow on the downside, as it broke below the 140 level today. If one owns TSLA from lower levels, then it may try and build a new base here. But last week’s buyable gap-up move is a sell based on the breach of the 150.46 intra-day low of the buyable gap-up day.”
“iShares Silver Trust (SLV) had a pocket pivot on Monday on a gap-up move through the 50-day moving average. This was a bottom-fishing move. I would not be chasing it up here. This move may be saying something about a broad move in the metals, and possibly something about the economy as a whole.”
“Netflix (NFLX) had a pocket pivot on Monday. The stock has been hugging the 10-day line up until today when it rose away from it.”
“Fleetcor Technologies (FLT) had a pocket pivot on Tuesday and could be entered here. This should hold the low of the flag pattern.”
“Nu Skin Enterprises (NUS), as long as it holds the 10-day line, could be buyable.”
“SolarCity (SCTY) is a stock that I talked about in last weekend’s report as a short. I noted that it is breaking down similarly to Sunpower (SPWR) in early 2008.”
“Cree (CREE) is an example of something that acts well before earnings and then gets smashed on the earnings report.”
“3D Systems (DDD) still acts well, and I talked about that in the weekend report as having a certain tightness.
“Any name not discussed here you can refer to in previous reports. Among big-stock leaders, Facebook (FB) is still hanging out.”