Market Lab Report – Pocket Pivot and Buyable Gap-Up Weekend Review for the Week of 11/23-11/27/2015

By | November 29, 2015

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     Trading Journal Notes from Dr. K an Gil regarding this past week’s pocket pivot and buyable gap-up reports. Euronet Worldwide (EEFT) GM – this stock is still forming a base, but Wednesday’s stalling pocket pivot provides an early entry point at the black 10-day line following the prior bounce off of the blue 50-day moving average. The small pullback on Friday provides a lower-risk entry point closer to the 10-day line. DR.K – While this is a seasonally strong time of the year, keep in mind just because the S&P 500 has been up from here until the end of the year over the last 12 years, individual stocks should still be bought as close to major support as possible in context with the strength of the general market. In other words, should market strength push such stocks higher on strong volume, your entry may be at a higher price which is okay in context with the behavior of the general market. Weibo (WB) GM – Chinese social-networking name WB got hit on Friday after Chinese markets dropped -5.5% the night before, gapping down to its 10-day moving average on very light holiday volume. This brings the stock into a lower-risk entry position, as long as a continued decline in Chinese markets next week doesn’t drag the stock down with it. This means that one must use the 10-day line as a very tight selling guide. DR.K – The risk in buying this stock is small as it is very close to its 10-day moving average. Any break below 17.58 which is the low of Wednesday’s action should be sold.  Maxilinear (MXL) GM – Tuesday’s stalling pocket pivot has led to a further upside drift into the highs of the three-week price range. I would prefer to buy into a pullback to the 10-day line at 16.56 as a lower-risk entry opportunity, should that occur. DR.K – Note moving averages adjust, so the 10-day will be slightly higher on Monday. if buying this stock, buy as close to the 10-day as possible.  Dycom (DY) GM – An interesting outside reversal to the upside after the company initially sold off in response to its earnings report. The outside reversal was also a pocket pivot, and the stock’s downside drift into the 10-day moving average on light volume provides a lower-risk entry point following the pocket pivot. DR.K – The stock is in a good position to be bought given its constructive two-day pullback closer to its 10-day moving average.  Palo Alto Networks (PANW) Stock is now about 4% beyond the 178.47 intraday low of Tuesday’s BGU. This remains within buyable range assuming it is still within your risk tolerance levels using the intraday low as your selling guide. Scalper1 News

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