Stocks that are at or near breakout buy levels.
- ADP (Automatic Data Processing)
- MCHP (Microchip Technology, Inc.)
- TTD (Tade Desk Inc.)
- CPRT (Copart, Inc.)
Not Investment Advice: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Overall Market Analysis
Looking at the big three indices (S&P 500, Nasdaq 100, and Dow Jones Industrial Average), all three are trading above their 50-day and 200-day SMA averages, and all closed at weekly all-time highs. Drilling deeper into the S&P 500 and Nasdaq 100, 396 out of 503 holdings (78.7%) and 73 out of 101 (72.3%) are trading above their 200-day SMA. And finally, looking at RSP (equal weight S&P 500 ETF), over the last 6 and 12 months it is up 16.6% and 20.3%, respectively.
Based on momentum and breath, the market is very much still in a bull trend. Consequently, we continue to be risk-on and look for opportunities to deploy capital.
Recent Trades
ADBE – Closed PL, -$2,080.11 (-2.76%)
Entered on 05/13/2024 at $489.34, exited for a loss on 05/14/2024 at $475.82.
Entered prematurely on the long side, aiming to play a breakout from a vertically declining trendline. Still on our watch list, as there is potential for an upward breakout–pending some price consolidation. The upward burst in early May suggests some institutional interest in this name; however, further consolidation is warranted (as we found out the hard way!).
CRWD – Open P/L, +4,605 (6.28%)
Entered long, after the stock broke above the consolidation right above the 50-day moving average. Overall, CRWD has been consolidating since February and displayed relative strength in recent weeks as the broader market moved lower. Expecting some continuation upward from this current pivot, followed by some price consolidation. Entered the stock long 05/14/2024 at $325.89 with a stop loss at $317–risking about $9 per share.
Watch List
ADP
Looking to go long on a close above $253-$255, would love to see a bit of consolidation right here before moving higher. If we get a few days of sideways action before the move up, we can expect a nice initial profit.
MCHP
TTD
Price is coming out of a nice round consolidation phase and already breaking out, however, the longer-term chart shows price consolidating since December of 2020. For that reason, not looking to buy the break out initially. Instead, looking for a shallow pullback and enter long on the breakout of a local pivot. The stock recently reported positive earnings in its most recent quarter, giving it the firepower to move higher.
CPRT
Stock is loose at the moment, so no clear entry. However, it is right below the 50-day moving average and moving in an orderly fashion lower. Recent quarterly results were positive, but the market’s response has been muted. Entry on more consolidation with a move above the 50-day moving average.
