December 22: Part II

Late additions:

Reata Pharma (RETA) is a biotech issue involved with treatments for cardiovascular, immuno-oncology, and other diseases. As mentioned in Thursday's video for premium subscribers, cancer/oncology/immune system therapies have been the hot buzzwords for several years. The current market cycle is no exception.

RETA shows losses expected for this year and next. Sales growth has been fairly steady on a sequential basis for the past three quarters. A 99 RS stock in a 99 RS group with an A acc/dis rating. The stock tripled in seven weeks before settling into a tight, four-week shelf with 14.8% depth. This combination of huge advance followed by fairly tight consolidation is the thesis for this name. It can be taken above the pattern high of 222.33.

Since this is a biotech issue, especially one without earnings, it is more speculative and risky than other stocks, all else equal. For very aggressive players only. Earnings expected Feb. 11 (unconfirmed).

The Trade Desk (TTD) offers a service that provides ad buyers with a platform for buying advertisement space. Earnings estimates are 24%/16% for '19/'20. Sales rose 42% and 38% in the last two quarters. A 95 RS stock with an A- acc/dis rating.

The stock forms a three-month, cup-with-handle with 38% depth and 18% handle depth. The handle depth is more than preferred, however its midpoint is above the cup's midpoint, which mitigates the 18% depth. TTD can be taken above the 267.64 handle high. Earnings expected Feb. 6 (unconfirmed).

Zymeworks (ZYME) develops treatments for cancer. The biotech concern has tripled year to date. No earnings are expected this year and next, while sequential revenue growth has been flat to lower in the last two quarters. A 99 RS stock in a 99 RS group with an A+ acc/dis rating.

A weekly chart of ZYME, not shown, shows no real distribution in the last 12 weeks. Price forms a four-week shelf. It is buyable above the 45.83 high of Thursday. Earnings expected Feb. 4 (unconfirmed).