January 8, 2020: Part II

Five9 (FIVN) is an enterprise software concern with estimates of 30%/10% for '19/'20. Sales increased 27% and 28% in the last two quarters. A 92 RS stock in a 74 RS group with a B acc/dis rating.

Today, FIVN cleared the high of its six-week flat base with attractive depth of just 8%. Price rose 3.4% on +11% volume. It can be taken above today's high of 70.45, or less than 1% past the entry pivot. Earnings expected 69.86 (unexpected).

Nvidia (NVDA) is benefiting from the current vogue for liquid glamours. Like FIVN above, NVDA has been a giant winner over the past several years. Note the steadiness of its weekly chart, below. The January '21 fiscal year should show earnings growth of 31%, per the Street. Sales have declined in the last two quarters. A 94 RS stock in a 96 RS group with an A- acc/dis rating.

I have been seeking a few liquid glamours for the Focus List. NVDA fits the bill, though its pattern is just 2.5 weeks in length. This presents higher risk. With that said, an entry above today's high of 242.04 and a stop below the 230.13 swing low of Dec. 31 (a logical place for a stop) equates to risk of about 5.0%. Earnings expected Feb. 13 (unexpected).