Monday and Tuesday have been kind to the names we have been looking at. Lets Look at the markets and talk about some PowerMoves from Tuesday:
Key Takeaways
Short term trend has flipped to UP
Both summation indexes are in bull mode
Breadth is getting better
Leading stocks acting well with many breaking out on strong volume
Markets
Three strong days has the SPY above some key levels. I would be cautious about adding to much exposure here and instead wait for some weakness. Ideally, we could use the weakness to hone in on our watchlist and see what names are showing RS.
The internals were decent on Tuesday. New lows printed smaller numbers and the advancing stocks outpaced declining by a good margin. SPY started the day strong and drifted lower until the closing bell. All in all, not a bad day and the internals justified the price action. That was not the case last week when we saw modest gains with horrible internals.
Short term trend has flipped to UP. This is when price is above both the 5 and 10 ema and the 5 crosses above the 10. This has been a good short term indicator for me.
NYSE actually saw a small net new high number. very positive.
Both summations are in bull mode. This is far from perfect, but I have learned over the years to lean into this signal.
All in all, this is a very good start IMO. Depending on how weakness is handled and digested, this is the first step for me to get aggressively long.
PowerMove Names from Tuesday
AvePoint Inc (AVPT)
(From News outlet) AvePoint Opus is a robust information lifecycle management solution that ensures organizations can manage all stages of the data lifecycle and represents the next generation of AvePoint's Resilience solutions. A key component of AvePoint Opus is AvePoint Maestro, which uses AI models powered by Azure Machine Learning to analyze content and metadata and assign appropriate policies to documents.
With AvePoint Opus, organizations can now achieve the following:
Manage Information and Ensure Compliance: Automatic data classification, powered by AI, helps reduce the risks associated with information over-retention or accidental data deletion to meet compliance standards.
Optimize Cloud Storage: Specific rules ensure organizations meet retention and disposal requirements to reduce excess cloud storage costs, so that organizations maintain greater control over their budgets.
Streamline Processes: Automatic records management removes time intensive work, allowing organizations to focus on higher value projects and speeding time-to-value for organizations seeking data-driven insights.
I did not trade this name yet. I missed the breakout on heavy volume with news. This is usually my bread and butter, but due to other obligations, I missed it. I will dig into the details and company and send it out. I am looking to get on this name if it offers a setup. When stocks show strong relative strength and brake out on heavy volume, that is a major clue to pay attention.
Nutanix Inc (NTNX)
Nutanix, Inc. provides an enterprise cloud platform, Nutanix Cloud, which consists of software solutions and cloud services. The Company's solutions deliver a consistent cloud operating model across edge, private-, hybrid- and multi cloud environments for all applications and their data. Its solutions allow organizations to simply run and move their workloads, including enterprise applications, databases, end user computing and virtual desktop infrastructure (VDI) services, container-based modern applications, and analytics applications, between on-premises and public clouds. It operates a subscription-based business model to provide its customers to choose the licensing. The Company's Nutanix Cloud Infrastructure (NCI) offers hybrid cloud infrastructure combine its core Hyperconverged Infrastructure (HCI) software stack (AOS), native, enterprise-grade hypervisor (AHV), virtual networking, disaster recovery, network and data security and Kubernetes container runtime
I am already long this name. I will be adding aggressively on a breakout above the pivot marked on the chart. This has the makings of a stock that could trend.
PGT Innovations (PGTI)
These are tricky, but sometimes offer a decent return. If they do come back and bid up to 36.00 a share, that is still a hefty premium to the close price. Will keep an eye on this one
Full list of tickers added to PowerMove watchlist:
AVPT BGC DRS LQDT PGTI ROVR SNPS
Conl:
The last two days have given us cushion in our trades. That is a major plus. I am going to take the remaining week slower and try and find a few very good names that I could be aggressive in IF any weakness presents itself.
I hope everyone is having a good week!
—NS