Today's Spotlight Stock is Dollar General Corp. (DG) as a short sale recommendation. Last year DG fell into "Low attribute" status and in March a new RS sell signal was generated against the broader US market.
| Danaher Corporation |
|
Machinery and Tools |
$83.21 |
81-85 |
123 |
75 |
4/5'er, Long-term market leader that pulled back after reporting earnings, Great R-R. |
| DTE Energy Company |
|
Utilities/Electricity |
$104.62 |
100-106 |
109 |
95 |
5 for 5'er, favored EUTI sector, yield > 3%, low beta name for seasonally weak period. |
| Morgan Stanley |
|
Wall Street |
$43.10 |
mid-40s |
75 |
40 |
5/5'er, Top 5 ranking in S&P 100 matrix & Wall Street matrix, Weekly Momentum turns Positive. |
| NetFlix Inc. |
|
Internet |
$160.28 |
148-154 |
182 |
138 |
3 for 5'er, leader in favored INET sector, positive diverger, good R-R, RS vs Mkt buy signal |
| Eagle Materials, Inc. |
|
Building |
$100.82 |
99-102 |
112 |
93 |
5/5'er, Top quartile rank in BUIL matrix, new positive weekly momentum change (after 19 weeks), Earn. 5/18. |
| Rockwell Automation, Inc. |
|
Electronics |
$157.64 |
Mid 150s |
170 |
146 |
5 for 5'er, pulled back creating entry point, Weekly Momentum Neg. 10 weeks. |
| Domino's Pizza, Inc. |
|
Restaurants |
$195.67 |
186-192 |
268 |
172/152 |
5/5'er, Positive Weekly Momentum Change, Bullish Triangle formation, Top 5 rank in REST matrix. |
| Cummins Inc. |
|
Machinery and Tools |
$159.24 |
154 - 158 |
200 |
142 |
Favored sector, Triple top completes Shakeout Use pullback to initiate positions, Positive trend RS charts in Xs. |
| MarketAxess Holdings Inc. |
|
Wall Street |
$188.16 |
180-190 |
234 |
176 |
5/5'er, Positive Weekly Momentum Change, Long-term leadership trend, Investors may purchase through call options. |
| Cullen/Frost Bankers Inc |
|
Banks |
$91.99 |
88-92 |
105 |
82 |
4/5'er, New RS buy signal, PB to improve R-R, Among most improved in BANK matrix. |
| Diamond Offshore Drilling, Inc. |
|
Oil Service |
$15.06 |
(15-16) |
10.50 |
17.50 |
0 for 5'er, bottom quartile of unfavored OILS sector, negative market and sector diverger. |
| Simon Property Group, Inc. |
|
Real Estate |
$165.65 |
(172-166) |
140 |
182 |
1/5'er, Recent RS Sell Signal, Move to "low attribute" rating for first time since early-2009. |
| Dollar General Corp. |
|
Retailing |
$73.91 |
(70-74) |
60 |
80 |
1/5'er, Recent RS Sell Signal, Low Ranking in Laggard sector (Retail), Earn. 6/1. |
Removed Ideas
| Vmware, Incorporation |
|
Software |
$94.15 |
low 90's |
TOP |
85 |
VMW remains actionable for new long exposure in the low-90s, those already involved may hold with a stop loss of $85. Earn. 6/1. |
Follow-Up Comments
|
Capital One Financial Corporation R ($80.32) - Finance - Shares of COF were recommended back in February, but regressed to hit our trading stop loss in March. Today the stock is testing the bullish support line and a print at $79 would mark a violation of trend. This serves as the stop loss for investors, as the attribute rating would decline to 2 if that trend change occurs. |
DWA Spotlight Stock
Dollar General Corp. R ($72.45) - Retailing - Last August shares of DG ended a 5 year run as a high attribute stock when it moved into a negative overall trend. Further deterioration was observed in March when this stock produced a new RS sell signal as it continued to trade much closer to 52-week lows than the new all-time highs that the overall market was publishing. In more recent weeks we have seen a pattern development similar to a bearish triangle formation, and also a rally back into near-term overbought territory. With the stock in the bottom-half of the Retail sector matrix, and the Retail sector itself a market laggard today, this becomes a logical short sale target here in the low-70s. We will use a buy stop of $80 initially, and a price target of $60 on the downside. Okay to initiate short sales in the $70-74 range.
| | | | | | | | 15 | | | | | | | | | | | | | | | | | | | | 16 | | | | | | | | | | | | | | | | | | 17 | | | | | | | |
| 96.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | • | | | | | | | | | | | | | 96.00 |
| 95.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7 | O | • | | | | | | | | | | | | 95.00 |
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| 93.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | 8 | | | • | | | | | | | | | | 93.00 |
| 92.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | O | X | | | • | | | | | | | | | 92.00 |
| 91.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 6 | O | X | O | | | • | | | | | | | | 91.00 |
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| 89.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | O | | O | | | | | • | | | | | | 89.00 |
| 88.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | | O | | | | | | • | | | | | 88.00 |
| 87.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4 | | | | X | | | O | | | | | | | • | | | | 87.00 |
| 86.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | O | | | X | | | O | | | | | | | | • | | | 86.00 |
| 85.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | O | X | | X | | | O | | | | | | | | | • | | 85.00 |
| 84.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | O | X | O | X | | | O | | | | | | | | | | | 84.00 |
| 83.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | O | 5 | O | X | | | O | | | | | | | | | | | 83.00 |
| 82.00 | | | | | | | | | | | | | | | • | | | | | | | | | | | | | | | | | | | | X | O | X | O | X | | | O | | | | | | | | | | | 82.00 |
| 81.00 | | | | | | | | | | | | | X | | X | • | | | | | | | | | | | | | | | | | | | X | O | X | O | X | | | O | | | | | | | | | | | 81.00 |
| 80.00 | | | | | | | | | | | | | 7 | O | X | O | • | | | | | | | | | | | | | | | | | | X | O | | O | X | | | O | X | | | | | | | | | | 80.00 |
| 79.00 | | | | | | | | | | | | | X | O | X | O | | • | | | | | | | | | | | | | | | | | X | | | O | | | | O | X | O | | | X | | | | | Top | 79.00 |
| 78.00 | | | | | | | | | | | | | X | 8 | X | O | | | • | | | | | | | | | | | | | | | | X | | | | | | | O | X | O | X | | X | O | | | | | 78.00 |
| 77.00 | | | | | | | | | | | | | X | O | | O | | | | • | | | | | | | | | | | | | | | X | | | | | | | O | X | C | X | O | X | O | | | | | 77.00 |
| 76.00 | | | | | | | | | | | X | | X | | | O | X | | | | • | | | | | | | | 2 | | | | X | | X | | | | | | | O | X | O | X | O | X | O | | | | | 76.00 |
| 75.00 | | | | | | | | | | | X | O | 6 | | | O | X | O | X | | | • | | | | | | | X | O | X | | X | O | X | | | | | | | O | X | O | X | O | X | O | X | | | | 75.00 |
| 74.00 | | | | | | | | | | | 3 | O | X | | | O | X | O | X | O | | | • | | | | | | X | O | X | O | X | O | X | | | | | | • | O | X | O | X | O | 2 | O | X | O | 5 | | 74.00 |
| 73.00 | | | | | | | | | | | X | 4 | X | | | O | X | O | X | O | X | | | • | | | X | | X | O | X | O | X | 3 | | | | | | • | | 9 | X | O | X | 1 | X | O | X | O | X | | 73.00 |
| 72.00 | | | | | | | | | | | X | 5 | | | | O | X | O | • | 9 | X | O | | | • | | X | O | X | O | X | O | X | | | | | | • | | | O | X | O | X | O | X | 3 | | O | X | | 72.00 |
| 71.00 | | | | | X | | X | | | | X | | | | | O | | • | | O | X | O | | | | • | X | O | X | O | X | O | | | | | | • | | | | O | B | O | | O | X | | | O | X | Med | 71.00 |
| 70.00 | | | | | X | O | X | O | X | | X | | | | | | • | | | O | X | O | | | | | X | 1 | X | O | X | | | | | | • | | | | | O | X | | | O | | | | O | X | | 70.00 |
| 69.00 | | | | | X | O | X | O | X | O | X | | | | | • | | | | O | | A | | | | | X | O | X | O | X | | | | | • | | | | | | O | X | | | | | | | O | X | | 69.00 |
| 68.00 | | | | | C | O | | 1 | X | O | X | | | | • | | | | | | | O | X | | X | | X | O | | O | | | | | • | | | | | | | A | X | | | | | | | 4 | | | 68.00 |
| 67.00 | | | | | X | | | O | X | O | X | | | • | | | | | | | | O | X | O | X | O | C | | | | | | | • | | | | | | | | O | | | | | | | | | | | 67.00 |
| 66.00 | | | X | | X | | | O | | 2 | | | • | | | | | | | | | O | X | O | X | O | X | | | | | | • | | | | | | | | | | | | | | | | | | | | 66.00 |
| 65.00 | X | | X | O | X | | | | | | | • | | | | | | | | | | O | | O | | B | X | | | | | • | | | | | | | | | | | | | | | | | | | | | 65.00 |
| 64.00 | X | O | B | O | X | | | | | | • | | | | | | | | | | | | | | | O | X | | | | • | | | | | | | | | | | | | | | | | | | | | Bot | 64.00 |
| 63.00 | X | O | X | O | | | | | | • | | | | | | | | | | | | | | | | O | X | | | • | | | | | | | | | | | | | | | | | | | | | | | 63.00 |
| 62.00 | X | 9 | X | | | | | | • | | | | | | | | | | | | | | | | | O | X | | • | | | | | | | | | | | | | | | | | | | | | | | | 62.00 |
| 61.00 | X | O | X | | | | | • | | | | | | | | | | | | | | | | | | O | X | • | | | | | | | | | | | | | | | | | | | | | | | | | 61.00 |
| 60.00 | X | A | X | | | | • | | | | | | | | | | | | | | | | | | | O | • | | | | | | | | | | | | | | | | | | | | | | | | | | 60.00 |
| 59.00 | X | O | X | | | • | | | | | | | | | | | | | | | | | | | | • | | | | | | | | | | | | | | | | | | | | | | | | | | | 59.00 |
| 58.00 | X | O | | | • | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 58.00 |
| 57.00 | 8 | | | • | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 57.00 |
| 56.00 | X | | • | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 56.00 |
| 55.00 | X | • | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 55.00 |
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