#$zen

[dragonflycap]

5 Trade Ideas for Monday: Ambarella, Avantor, Graco, IQVIA and Zendesk

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Ambarella, Ticker: $AMBA

Ambarella, $AMBA, started higher out of a long base in November. It continued to a high in February before pulling back. That found support and reversed last week. The RSI also reversed higher with the MACD curling to cross up. Look for continuation to participate…..

Avantor, Ticker: $AVTR

Avantor, $AVTR, has been continually moving higher off the pandemic low. It has paused to consolidate several times along the way. It is currently in consolidation under resistance with the RSI rising in the bullish zone and the MACD positive and climbing. Look for a push over resistance to participate…..

Graco, Ticker: $GGG

Graco, $GGG, ran to a top in January before pulling back. It has since made two moves lower where it found support and reversed up to resistance. The RSI is rising in the bullish zone and the MACD is positive and moving higher. Look for a push over resistance to participate…..

IQVIA, Ticker: $IQV

IQVIA, $IQV, slowed the pace higher when it crossed the 200 day SMA in May. It continued to a top in February and then settled into consolidation. It broke that consolidation Thursday with a move higher. The RSI is rising in the bullish zone with the MACD positive and moving higher. Look for continuation to participate…..

Zendesk, Ticker: $ZEN

Zendesk, $ZEN, continued to move higher until making a top in early February. It has pulled back from there and settled into consolidation into March. It held there until a push higher Friday. The RSI is rising in the bullish zone with the MACD crossed up but still negative. Look for continuation to participate…..

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first Quarter of 2021 in the books, saw equity markets painting a mixed picture, but broadly positive.

Elsewhere look for Gold to possibly reverse out of consolidation to the upside while Crude Oil pauses in its uptrend. The US Dollar Index continues in the short term uptrend while US Treasuries are pausing in their downtrend, and possibly reversing higher. The Shanghai Composite is also looking at a possible reversal to the upside while Emerging Markets pullback in their uptrend.

The Volatility Index looks to remain very low and possibly move lower, making the path easier for equity markets to the upside. Their charts look strong on the longer timeframe, led by the SPY. There looks to be a rotation going back into the QQQ as the IWM marks time. On the shorter timeframe both the QQQ and IWM lag the SPY again with the IWM looking stronger than the QQQ on this scale. Use this information as you prepare for the coming week and trad’em well.

[dragonflycap]

5 Trade Ideas for Monday: ACADIA Pharma, LivePerson, Landstar, Worldpay and Zendesk

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

ACADIA Pharmaceuticals, Ticker: $ACAD

ACADIA Pharmaceuticals, $ACAD, stared higher off of the December bottom, pausing when it had returned to the Fall highs. Then 2 weeks ago it jumped to a higher high before the digestive pullback last week. The strong move Friday, along with the RSI turning back up and MACD avoiding a cross down support another leg higher. Look for continuation to participate…..

LivePerson, Ticker: $LPSN

LivePerson, $LPSN, topped out in September and then started to move lower. It found support in December and started to move higher into the New Year. Two weeks ago it made a higher high and then pulled back. It ended last week moving back up toward that high. The RSI is also moving back higher in the bullish zone with the MACD flat and positive. Look for continuation to participate higher…..

Landstar, Ticker: $LSTR

Landstar, $LSTR, started lower in early September. It found support at the end of October and reversed only to be stopped at the 200 day SMA at the end of November. It fell back from there to a lower low at the end of the month. Since then it rose back through the 200 day SMA to a higher high in February and has pulled back. Friday saw a strong move that may mark the bottom with the RSI turning back up but the MACD still falling. Look for continuation to participate…..

Worldpay, Ticker: $WP

Worldpay, $WP, topped in October and then began a drop that found support in late December. It has stepped higher since, adding a gap up 2 weeks ago. It has been digesting that gap and ended last week with a strong move that may indicate another leg beginning. The RSI is turning back up after retracting from an overbought condition while the MACD may be crossing down. Look for continuation to participate higher…..

Zendesk, Ticker: $ZEN

Zendesk, $ZEN, pulled back from a high in September, finding support in November. It confirmed a double bottom as it rose into 2019 and kept moving higher. It hit resistance last week and pulled back. By the end of the week it was showing strength again. The RSI is turning back up but the MACD is falling. Look for continuation in the price to participate…..

After reviewing over 1,000 charts, I have found some good setups for the week.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday heading into March Options Expiration week sees that equity markets have finally taken a rest, and are digesting the strong moves from the Christmas Eve low.

Elsewhere look for Gold to pullback in its uptrend while Crude Oil marks time moving sideways. The US Dollar Index continues in broad consolidation but with a possible bullish reversal building while US Treasuries move higher in broad consolidation. The Shanghai Composite is making a digestive move in its uptrend while Emerging Markets are pulling back and possibly reversing lower.

Volatility looks to remain low but rising from extremes shifting the bias to lower for the equity index ETF’s SPY, IWM and QQQ. Their charts all confirmed reversal patterns on the weekly timeframe and their first 5 day moves lower on the daily timeframe. No major damage to the uptrend has been done at this point. Use this information as you prepare for the coming week and trad’em well.

[estimize]

Here’s what to expect when Q3 peak earnings season kicks off tomorrow

This week we enter what’s considered peak earnings season for the third quarter of 2018, with roughly 350 S&P 500 companies reporting in the next three weeks. Early on we’ve already gotten a good idea of what to expect for the rest of the season. Blended S&P 500 EPS growth (actuals for the 85 companies that have reported, and estimates for those that haven’t) stands at 20%, with revenues at 8%. While this is softer than the 25% and 23% of the first and second quarters, it would still be the third best result since 2011. With that said, corporate fundamental growth is showing signs of slowing.

While every sector is anticipated to post year over year (YoY) profit growth of at least 6%, Energy is in the lead with 90% still due to easier YoY comparisons, followed by Financials at 39% (although revenue growth only stands at 4%) and Technology at 21% on EPS and 10% on revenues. Despite the massive meltdown in small caps these last couple of weeks, and the general decline of tech over this time, we still like small and mid cap enterprise tech names such as Zendesk, Hubspot and Workday. Fundamentals for these names remain robust, and for the time being they continue to benefit from the massive cap-ex spending cycle we’ve been seeing over the past year in this space.

In spite of high expectations and strong results, a slew of concerns seem to be dominating press releases thus far, ranging from trade war fears, to rising rates and wage costs. But none more so than the stronger dollar, which is somewhat surprising as the US Dollar Index is only up 5% for the year. Even so, roughly a third of reporting companies have commented on the negative impact of foreign exchange when repatriating revenues back to the dollar. Around 50% of S&P 500 revenues come from abroad. Thus far, only around a fifth of reporting companies have mentioned tariffs as a concern going forward. Early guidance for Q4 and CY 19 is starting out a little softer than where it was at this point in the last two quarters.

This week we’ll get reports from 429 companies in the Estimize universe, with 158 of those in the S&P 500. Highlights will come from big tech names such as Alphabet, Amazon, Twitter, Microsoft and Intel.

[estimize]

The two best tech analysts on Estimize still like enterprise tech this earnings season, but there is one caveat

This week on the Estimize Roundtable, Estimize’s CEO, Leigh Drogen and SVP Christine Short are joined by Rob Defrancesco, founder and managing editor for Tech-Stock Prospector and Sean Udall, CIO at Quantum Trading Strategies. The group discusses Q1 earnings season for tech, and while they think small and midcap enterprise tech names such as HubSpot, Workday, Zendesk, Splunk and Nutanix will announce strong results, they admit it’s difficult to find extremely compelling valuations anywhere in tech right now. One area that is mutually unloved for earnings season is the FANG stocks, even with Netflix’s blowout quarter last night.

[estimize]

Are there any good buying opportunities still left in tech, or in any industry for that matter?

This week on the Estimize Roundtable, Estimize’s CEO, Leigh Drogen and SVP, Christine Short are joined by Sean Udall, CIO at Quantum Trading Strategies. We review Q4 tech results, with small and mid cap enterprise tech still putting up the biggest beats and finally getting rewarded for it. With inflation likely to rise as interest rates normalize, the group takes a look at energy, gold and real estate as potential beneficiaries, while rising wages may help certain retailers and the health and wellness space.

[estimize]

Estimize Roundtable: All eyes may be on big tech reports next week, but the real bargains are in small and mid cap enterprise tech

This week on the Estimize Roundtable, Estimize’s CEO, Leigh Drogen and SVP, Christine Short are joined by Sean Udall, CIO at Quantum Trading Strategies. Ahead of big tech earnings out next week, the group discusses how the real bargains are within small and mid cap enterprise technology names as financials, insurance and industrials companies invest more in the cloud (human capital management, marketing solutions). Payment solutions, especially those in China remain favorites, while social media expectations are a mixed bag.

[estimize]

The Biggest 2018 Public and Private Market Tech Trends

This week on the Estimize Roundtable, Estimize’s CEO, Leigh Drogen is joined by Rob Defrancesco, founder and managing editor for Tech-Stock Prospector and Sean Udall, CIO at Quantum Trading Strategies. The group weighs in on the cryptocurrency craze, the current rotation out of tech and into industrials and financials, and reviews the general performance of the tech sector in 2017 while making predictions for 2018.