Major averages finished slightly higher on mixed volume. Te S&P 500 has been trading sideways along its 10-day moving average while the NASDAQ Composite bounced of its 10-day line. Both closed near the top of their trading ranges. Meanwhile, the Bank of England voted 7-1 to maintain its key interest rate and current levels of its QE purchasing program. It reduced its GDP growth in 2017 by 10 basis points. The EU, meanwhile, raised its 2017 GDP growth forecast to 1.9% from 1.6%, a ray of sunshine in an otherwise darkening horizon.
Focus List Review
MOMO found support at its 20-dema yesterday, putting it in a lower-risk entry position using the 20-dema s a tight stop. Earnings are expected in on May 23rd.
NOW is pulling into its 10-dma as volume declines. Look for a test of the10-dma with volume continuing to decline as a potentially lower-risk entry opportunity.
NVDA posted a buyable gap-up yesterday, which we reported on right at the open when the stock was trading around 115. It closed 121.29, just above the prior highs of its 19-week base, so would constitute a standard-issue base breakout that is within buyable range this morning based on pre-open prices.
SNAP crackled then popped on a weak earnings report, trading 22% lower in the after hours and is gapping down this morning after earnings. This illustrates why we do not advocate playing "earnings roulette" with stocks through earnings, preferring instead to wait for any actionable price reaction such as we saw yesterday in NVDA's BGU.
SQ continues to hold tight within a four-day bull flag following last week's buyable gap-up. Volume continues to dry up which is constructive.