The big earnings releases from Apple (AAPL), Alphabet (GOOG), Microsoft (MSFT), and Facebook (FB) came and went this week without much fanfare, though Amazon.com (AMZN) is still to hit the docket Thursday.
The Nasdaq gave a good account of itself by reversing mid-session Tuesday, and then seeing its range contract today.
The growth sector has a few constructive bases setting up in Advanced Micro Devices (AMD), Smartsheet (SMAR), Pinterest (PINS), and Mongodb (MDB). These were on Monday evening's Focus List, but were removed Tuesday due to the overall sluggish behavior of recent breakout attempts in technology.
AMD broke out today, +7.6% on +241% volume. Aggressive players who are champing at the bit to put money to work in technology despite the somewhat torpid environment could consider taking AMD around today's closing level, which is about 3% past the pivot. The 3% level is normally the maximum beyond a pivot that is believed to be permissible to use.
The stock is not on the Focus List due to our interest in seeing more evidence that post-breakout follow-through in other growth titles -- especially technology -- is worthy of risking our precious capital.
Along these lines, until we see improvement, the game plan will be to take pullback entries in growth stocks as they present themselves. Two of these are discussed below, along with an index ETF.
Niche growth shares away from technology may also be considered for breakout buys, one example being Generac Holdings (GNRC), which moved up 25% in three weeks as a triggered trade.
The following names are believed to offer the most attractive prospects for our style of momentum-based speculation. To zoom in, please click on the charts.
ProShs UltraPro QQQ 3x ETF (TQQQ)
In sum, we are favoring pullback entries rather than breakout buys in the growth sector. Exceptions can be made in the case of niche growth shares away from the technology sector. Should evidence surface that institutions have strengthened their conviction in technology away from just the Big 5, we will be flexible and go where the money is flowing.
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