The following charts are weekly views with 10ma and 40ma plotted. All will be the focus for new trades for the coming week and represent potential new initiations, positions that have already been established (but remain within buying range) or add on opportunities.
(Click any chart to enlarge)
Staar Surgical (STAA) has formed a bull flag and closed just below the 10 week MA. STAA has has a monster run in 2018 up nearly 200% ytd and for good reason. Posting triple digit EPS growth for 3 of the last 4 quarters and strong double digit sales growth over the same period, the implantable lens maker has taken their new procedure global to great success including triple digit sales growth in Japan and China, as well as double digit sales growth across Canada and India. Having seen the surgery and amazing technology myself, and having my wife very pleased with the results, I’m looking for another entry in STAA to perhaps recoup some of the out of pocket expense and continue to participate in this growth story. Early entry is a possibility on a reclaim of the 10ma, which can then be used as the bench to manage risk… or the safer play for entry is the flag breakout.
Hubspot Inc (HUBS) has pulled back to horizontal support near $143 with 10 week MA support just below. With 6 consecutive quarters of triple digit EPS growth and sales growth consistently near +40%, forward estimates are calling for 60%+ EPS growth in 2019 and those estimates have been on the rise. Fund participation continues to increase and so does short interest. With nearly 10% of the float short and 8 days to cover; if the general markets find their footing, HUBS could be back to new highs rather quickly. I’ll be watching for continued weakness early in the week to see if HUBS may give another opportunity for an entry near $143. On strength, confirmation of a weekly swing low is another option for entry using the $143 level and/or the 10 week MA to manage risk.
I covered Nvidia Corp (NVDA) on the focus list a couple weeks ago. General market weakness is providing another low risk opportunity for entry just under $270. It’s easy to manage right here, but if the market isn’t ready to bounce just yet, perhaps a flush and reclaim of this level and the 10 week MA is in the cards. On strength or weakness, NVDA will be on my radar for potential entry in this true market leader.
I highlighted Cronos Group (CRON) as a speculative play back on 9/17. That pop above $10 led to a quick 50%+ rally as the group caught fire and CRON traded $15+ that same week on monster volume. Well, here we are again as CRON has round tripped and is dancing around horizontal support and round number 10 again with a rising 10 week MA catching up quickly. Volume has eased nicely on the pullback over the past couple weeks and the trade is easily managed on a reclaim of the $10 level.
Disclaimer: None of the presented content represents individual investment advice to buy or sell securities and the information provided is solely for informational, educational and entertainment purposes. Author has no positions in stocks mentioned at the time of this writing.