Analyst commentary. Includes: W, SPNC, LPI, BOBE, HUBS, MOMO, ATRA, PTC, SINA, and KR.
| Comments |
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| ATRA Atara Biotherapeutics ($12.08) - Biomedics/Genetics - ATRA is trading in a negative trend and during Thursday’s trading session, broke a spread triple bottom at $12.00, a new 52 week low. This stock is an unacceptable 0 for 5’er as it does not have any positive trending or relative strength characteristics in its favor at this time. Additionally, this stock ranks in the bottom decile of the Biomedics/Genetics sector RS matrix. Avoid as supply is in control and the weight of the evidence is negative. There is no remaining support on the chart. Note resistance at $14.50. |
| BOBE Bob Evans Farms, Inc. ($68.34) - Restaurants - In negative reaction to their earnings report, BOBE broke a double bottom at $68. The stock is still a 4 for 5'er ranking 1st out of 37 stocks in the Restaurants sector matrix. Traders may exit positions here, while investors may continue to hold and look to further support at $66 from May. No new positions at this time. |
| HUBS Hubspot Inc ($64.80) - Software - HUBS broke a triple bottom at $65. The stock remains a high attribute name with a score of 5 and ranks within the top quartile of the favored Software sector matrix. Traders may exit positions here, while investors may employ a trend stop with a move to $62. No new positions at this time. |
| KR The Kroger Co. ($24.65) - Retailing - After a negative reaction to earnings, KR broke a double bottom at $28 and fell further to $25, a low level not seen on the chart since June 2014. This stock is a weak 2 for 5’er within the unfavored Retailing sector that has seen three months of negative monthly momentum. Supply is in control and the technical picture is negative here. There is no remaining support on the chart. At this juncture, resistance lies at $36. |
| LPI Laredo Petroleum Inc. ($10.88) - Oil - LPI broke a double bottom at $11 on Thursday, marking the fourth consecutive sell signal for the stock. LPI is a 3 for 5’er that is trading in a negative trend. Additionally, weekly momentum just flipped negative, suggesting the potential for further downside. Avoid this name as the trend is negative and supply is in control. The next level of support lies at $9.50, the July 2016 low while resistance is at $13. |
| MOMO Momo Inc (China) ADR ($35.94) - Software - MOMO broke a triple bottom at $36. The stock now rests against support from April and still offers all five positive technical attributes. Traders may exit positions with a move to $35, but investors may look to further support in the lower $30's from here. We do not advise adding new positions at current levels. |
| PTC PTC Inc ($56.22) - Software - PTC broke a double bottom at $54. This is the first sell signal since February 2016. As a result, we will give the stock the benefit of the doubt. The stock still comes with a score of 5 and ranks near the top third of the favored Software sector matrix. While we do not advise new positions at this time, those long may continue to hold and look to further support offered between $51 and $52. |
| SINA Sina.com ($85.46) - Internet - SINA broke a double bottom at $85 and continued lower to $84 intraday. This is the stock's third consecutive sell signal and comes after a bearish catapult formation earlier this month at $90. Those long may consider exiting positions since supply continues to gain strength at this juncture or a reversal into X's. For those that wish to give it more room may look to the next level of support against the bullish support line at $78. No new positions at this time. |
| SPNC Spectranetics Corporation ($30.20) - Healthcare - SPNC broke a double top at $30 on Thursday and is now up against resistance reached back in May of this year. This stock is an acceptable 4 for 5’er within the favored Healthcare sector. Weekly momentum just flipped positive, suggesting the potential for further upside from here. Okay to initiate new positions on the breakout as demand is in control and the weight of the evidence is positive. The first sell signal from here comes with a move $25, a triple bottom. |
| W Wayfair Inc. ($73.89) - Retailing - With the most recent action, W broke a double top at $74 and climbed higher to $75. This stock is a perfect 5 for 5’er that is trading well above the bullish support line and is showing superior strength relative to both the market and its peers. W currently ranks 2nd out of 88 names in the Retailing sector RS matrix, making this one of the strongest names in this space. At this juncture, W is in extremely overbought territory so those looking to initiate or increase exposure would be best served on a pullback. The first sign of trouble comes with a move to $65, a double bottom sell signal. |
