The McClellan Oscillator or $NYMO bounced from an oversold reading at the close this past Monday. It never reached the extreme oversold level that I like to trade off of (-80 or below), so I did not take a position in the $SPXL this past week. The market seems to be churning in a very tight range & has been very choppy over the past few months. I've been taking gains when I have them & keeping stops tight in this type of market. I'm only holding a half position in $ARIA, which is a speculative trade. I normally only go with a half position on any spec or levered type security due to the volatility. Going into next week, I have no direction bias, but I do believe we are going to get a big move in one direction or the other soon. My guess is it's to the downside, but that's purely speculation on my end. Onto the charts...
HDFC Bank is a foreign play, specifically India. India is one of the fastest growing economies & is widely considered one of the most attractive foreign markets. $HDB just about tested it's 50 day moving average last Monday & has since bounced back. It looks ready to test it's all time highs above $64/share. Stochastics had a recent bullish cross and is pointing to up; RSI is not yet overbought on a short term time frame. I like this above $62.63, with a stop placed at $61.50.
Ambarella, Inc. has been one of the hotter stocks in the past few years. It's in the semiconductor industry & makes the chip that is in GoPro's cameras (also a very hot stock), as well as many other popular tech products. $AMBA seems to be forming a cup and handle pattern on it's daily chart. This chart pattern is a very powerful one when it plays out as planned. I like this above $118.50 on volume (this would break above the down trend line of the handle in the formation), with a stop placed at $113. Earnings are 9/2, so not a factor.
Ciena Corp. is a technology company that specifically makes fiber optic networking equipment sold predominantly to telecom carriers. $CIEN tested and held it's 50 day moving average last Thursday. It looks ready to breakout to all time new highs above $26 & change. Stochastics is about to make a bullish cross & RSI is pointing steeply upwards, but not yet overbought. I like it above $25.67, with a stop placed at $24.30. Earnings are 9/2; so not a factor.
Incyte, Corp. is in the Biotechnology sector of the broader "healthcare" space. It has been rumored in a lot of buyouts, including Gilead Sciences. $INCY has corrected quite a bit from it's all time high's over $121/share. It's RSI & Stochastics are signaling oversold signals. Earnings are Tuesday, 8/4, before the market open, so if you play this one it should strictly be for a day trade/intra-day scalp. I do not recommend holding through earnings, as is the case with all stocks I watch. I like this above $105.25 with at $102.70.
Fitbit is in the wearable tech space, competing with the likes of Apple & Samsung. It sells fitness bracelets that track & record all of your health data. It is a newer IPO, first hitting the market this past June 18th. Newer securities tend to be more volatile on a daily basis, so this one is not for the faint of heart. On top of that, $FIT reports it's first public quarterly earnings on Wednesday, 8/5, after the market closes. The chart shows a recent test & bounce off it's 21 day exponential moving average. RSI is not yet overbought & is pointing up, while Stochastics had a bullish cross recently. I like this above $47.84, with a stop at $44 even. This would be only a 1-2 day hold with earnings coming up mid week.
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