August 28, 2019

This week defines the Dog Days of August, as it is one of the slowest of the year due to so many market participants away on vacation. While the range-bound price movement and lack of volume may appear innocuous, the potential for another round of market-moving tweets and counter-tweets by the U.S. and China remains. The two powers meet again in September to continue their trade talks.

And while it is never wise to fixate on the news headlines, the fact of the matter is that this is a trendless market. A trendless market without much in the way of pattern setups. While this is a plus for those holding Focus List names such as Kirkland Lake Gold (KL), Shake Shack (SHAK), Coupa Software, and Shopify (SHOP), et al, it is nevertheless a time for patience.

It’s a trade-small-if-at-all market.

Among the names, Adaptive Biotechnologies (ADPT) is a recent new issue that shows losses expected for ‘19/’20. Sales growth has been 79%, 79%, 30%, and 91% in the past four quarters. A 94 RS stock in a 70 RS group.

The stock is 2% from the pivot of its first base since going public. It can be taken above the 48.50 handle high. ADPT represents above-average risk given that it is a biotech. Earnings expected Nov. 12 (unconfirmed).

Inspire Medical Systems (INSP) shows losses forecast by Wall Street for this year and next. Revenue, however, has shown strong growth of 62% and 65% in the last two quarters. A 93 RS stock in a 75 RS group with a B- acc/dist rating.

INSP forms a seven-week consolidation in which it has shown repeated support at its 50-day line. It can be taken above the 69.71 pattern high. Earnings expected Nov. 5 (unconfirmed).

Tandem Diabetes Care (TNDM) is expected to record losses in ‘19/’20, though the losses have been shrinking for the past four years. For ‘19/’20, the per-share deficits are forecast to be 65 cents and 6 cents, respectively. Revenue growth has been triple-digit for the past two quarters. A 96 RS stock in a 75 RS group with a C acc/dist rating.

The stock forms a three-month consolidation with a 21% depth. It is buyable above the 72.19 pattern high 2% away. Earnings expected Oct. 31 (unconfirmed).

In sum, the market is ready to move into a news-filled week after Labor Day. Until then, with quieter pre-holiday activity expected for the rest of this week, and with few setups, cash is anything but trash.

Kevin Marder

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Unless otherwise noted, charts created using TradeStation. ©TradeStation Technologies, 2001-2019. All rights reserved.

The views contained herein represent those of Marder Investment Advisors Corp. At the time of this writing, of the stocks mentioned in this report, Marder Investment Advisors Corp., Kevin Marder, or an affiliate thereof held no positions, though positions are subject to change at any time and without notice. Estimate data provided by Thomson Reuters. Expected earnings release dates provided by EarningsWhispers.