SWING TRADERS: July 30 HOLLY Hot List Update

July 30, 2018

There’s no way to sugar coat it. It’s been a rough week for high-beta names. And a quick look at our HOLLY Hot List leaders and laggards board bears this out with our three best stocks ($FITB $GNTX $KEY) making only 3-4% gains, while our four biggest losers ($USAT $NVCR $ROKU $TDOC) all lost 11%. Ouch.

Bull markets don’t go up in straight lines and neither do individual stocks. My hope is that many of the names in this list will set up again for some new breakouts higher.

In the past week I added $WPX to the list and will be adding $NTB at tomorrow’s opening print.

WPX Energy $WPX has been forming a nice, tidy, high, and flat base since the middle of March. And on a weekly chart, you’ll see volume steadily drying up since the start of this base. That tells me we might be ready for another leg higher. Of course, we’ve got earnings coming on Aug. 1, so there’s a good chance that’ll be the catalyst that gets us going.

And @TradeIdeas HOLLY has identified a couple buy points recently, lending more confidence in the future direction of this stock:

The Bank of N.T. Butterfield & Son $NTB will be added tomorrow. It has been forming a similar pattern to $WPX with volume steadily decreasing. But in this case, we’ve got earnings behind us and the initial reaction to that report last week was positive. This one feels higher as well:

As with all names on the @TradeIdeas HOLLY Hot List, we’ll keep them active until such time that they pull back 20% from the high print we see. As long as that pullback hasn’t happened, these are stocks worth keeping an eye on for possible swing trades or investments. You can follow me on Twitter or StockTwits to keep tabs on swing trades I enter in my personal account from this list.

Here is the latest peak of the List. We stopped out of $BOX today. And as I mentioned earlier, a lot more red in these names than green in the past week.

Mind your risk!

If you’d like to learn how HOLLY, the Artificially Intelligent Virtual Analyst, can improve your trading and investing results, please visit Trade Ideas.

Good luck out there!

~ Sean McLaughlin (@chicagosean)