20 19 - MarketSmith · 2019-07-11 · EXCLUSIVELY FOR MARKETSMITH MEMBERS AUGUST 27, 2019 1:15pm PT...

Q3 STOCK GUIDE

»1920

Advanced Selling Strategies

E X C L U S I V E LY F O R M A R K E T S M I T H M E M B E R S

AUGUST 27, 2019 1:15pm PT / 4:15pm ET

We’re excited to announce that U.S. Investing Champion and Stock Market Wizard Mark Minervini is joining forces with MarketSmith for a special webinar!

Mark will demonstrate how he uses MarketSmith to find new stock ideas and time his trading during market hours. You’ll get actionable intelligence and hear about stocks that Mark has on his watchlist.

Don’t miss this exciting opportunity to learn MarketSmith strategies from a master—register today!

investors.com/mswebinars

DON’T MISS MARK’S ONCE- A-YEAR OCTOBER WORKSHOP, THE MASTER TRADER PROGRAM!Learn advanced buying and selling strategies and trade LIVE alongside Mark and special guest David Ryan. For information, go to www.4stocktraders.com.

FEATURING Mark Minervini

Stock Guide // 2019 Q3

At MarketSmith, we’re big believers in rules-based trading. Rules can help

counteract emotions, which can cloud even the clearest of heads when money

is on the line. In this issue of Stock Guide, we’ll dive into some alternative

selling strategies that go beyond a profit target and a stop-loss. Which

technical signals can alert you when a stock has topped and is likely to reverse?

Check out our feature article, Advanced Selling Strategies, to find out.

For our interview this month, we talked to Chris Gessel, Chief Content Officer

of Investor’s Business Daily®. As the captain of IBD’s Markets Team, Chris fol-

lows the indexes from open to close and tracks hundreds of stocks every day

using MarketSmith. He shared some insights from his decades of experience,

as well as a custom MarketSmith screen for finding new trade ideas.

In the latest edition of Good Trade / Bad Trade, we talked with MarketSmith

Senior Product Coach Arnie Gutierrez about two of his recent trades. While

he booked a nice profit jumping into the legal marijuana industry at the right

time, he also got burned by the fast-moving and volatile action of a hot tech

IPO. Arnie will break down his buy and sell points, how he held the stocks and

what he learned from each trade.

As always, if you have any questions or comments about your investing

research or any MarketSmith features, please call one of our product coaches

at (800) 831-2525 or email us at [email protected]. We’re here to

help you make more money in the market.

Best Returns,

The MarketSmith Team

E X C L U S I V E LY F O R M A R K E T S M I T H M E M B E R S

AUGUST 27, 2019 1:15pm PT / 4:15pm ET

We’re excited to announce that U.S. Investing Champion and Stock Market Wizard Mark Minervini is joining forces with MarketSmith for a special webinar!

Mark will demonstrate how he uses MarketSmith to find new stock ideas and time his trading during market hours. You’ll get actionable intelligence and hear about stocks that Mark has on his watchlist.

Don’t miss this exciting opportunity to learn MarketSmith strategies from a master—register today!

investors.com/mswebinars

DON’T MISS MARK’S ONCE- A-YEAR OCTOBER WORKSHOP, THE MASTER TRADER PROGRAM!Learn advanced buying and selling strategies and trade LIVE alongside Mark and special guest David Ryan. For information, go to www.4stocktraders.com.

FEATURING Mark Minervini

S & P 500 INDEXCLOSE 2941.76

2916.502940.91

2815.152800.18

2954.13

2691.99

2603.54

2346.58

2722.27 2728.812728.81

50 DAY MOVING AVERAGE


2350

2450

2550

2650

2750

2850

2950

3050

3150

DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

500 M

850 M

1.4 B

2.5 B

28143117319522822825112814301621952172410271329

JUNMAYAPRMARFEBJAN 2019DECNOVOCTSEPAUGJUL

NASDAQ COMPOSITECLOSE 8006.24

7933.31

8133.30 8107.38

7486.51

8176.08

7419.56

7604.24

6922.836830.76

6190.16

7332.92 7292.217292.2150 DAY MOVING AVERAGE


6100

6300

6500

6700

6900

7100

7300

7500

7700

7900

8100

8300

8500

8700

DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

850 M

1.6 B

2.5 B

4 B

28143117319522822825112814301621952172410271329

JUNMAYAPRMARFEBJAN 2019DECNOVOCTSEPAUGJUL

4

MarketSmith.com // 2019 Q3

S & P 500 Index

NASDAQ Composite

5

*All screen results are computer-generated and were run on June 28, 2019.

Market Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Feature Article: Advanced Selling Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . 6

A Conversation with Chris Gessel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Bigger Better IPOs* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Zoom Video Comm Cl A (ZM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Zscaler Inc (ZS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Docusign Inc (DOCU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Anaplan Inc (PLAN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Avalara Inc (AVLR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Smartsheet Inc Cl A (SMAR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Pinterest Inc Cl A (PINS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Beyond Meat Inc (BYND) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Good Trade/Bad Trade: Arnie Gutierrez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Institutional-Quality Movers* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

eHealth Inc (EHTH) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

The Trade Desk Inc Cl A (TTD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

CyberArk Software Ltd (CYBR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Globant SA (GLOB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Kirkland Lake Gold Ltd (KL) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Universal Display Corp (OLED) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Features Highlight: Smart Alerts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Connect with Us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Table of Contents

6

MarketSmith.com // 2019 Q3 l Feature Article

It’s important to remember that buying stocks should be based on a

combination of fundamental and technical factors, while selling stocks should be based primarily on technical factors. Two of the most famous

and successful sell rules from William O’Neil’s How to Make Money in Stocks are:

1. Sell a stock offensively when it’s up 20-25%

2. Sell defensively when it falls 7-8% below your buy point

These selling rules will serve you well for maximizing gains and

minimizing risk.

That’s not to say that alternative selling strategies shouldn’t be utilized.

These strategies take advantage of the fact that you, as an individual

investor, can respond much more rapidly to technical factors than can

a large institution. While it can take institutions weeks or months to

accumulate enough shares for a position, you can buy or sell a full position

in milliseconds without affecting the overall stock price.

Here are a few technical indicators you can use as early signs that you

might want to sell some or all of a position.

Breaking below the 21-day moving average line. In a confirmed uptrend,

most high-quality growth stocks will hold above their 21-day line when

they’re on a strong run. If a stock breaks below its 21-day line on above-

average volume, it’s likely on its way down to the 50-day line. Selling at

least part of your position will lock in some gains.

Breaking below the 50-day moving average line. This is similar to the

21-day line strategy above, but it indicates a stronger sell signal. Many of

the MarketSmith Coaches will use a 50-day line break on heavy volume as

an indicator to sell the remainder of their position.

Feature Article:

Advanced Selling Strategies

7


Channel Line Break. This

happens when a stock has set

up its general trading range

during a steady run, then

starts behaving atypically

well. This can mean it’s a

good time to book some

profits, as the stock may have

topped.

Channel Line Break

Wrench Icon

Moving Averages

TIP: To turn on the 21-day moving average line in MarketSmith, click the Wrench Icon above the Chart Window and select “Moving Averages” from the drop-down menu. In the Daily Moving Averages section, choose “21” for either the green line or the pink line. This will be your 21-day line on the chart.

50-day

8

Chris Gessel has been covering the market

for Investor’s Business Daily® since 1996.

From 1999 to 2004, he was the primary

author of The Big Picture, IBD’s premier

market analysis column. As IBD’s Chief

Content Officer, he directs market, mutual

fund, company and technology coverage,

and serves on its executive committee.

MarketSmith recently sat down with Chris

to talk about market trends, 2019 IPOs

and technical analysis.

Q: Let’s talk current market. Which sectors are you particularly bullish on as

we head into Q3?

I’m watching semiconductors and software. Software has been the

big leader this year. Look at Veeva (VEEV) — Leaderboard took a 20%

gain on this, but it just keeps going. Other names like Zscaler (ZS)

and CyberArk (CYBR) are setting up nicely after their initial bullish

breakouts. There are just so many software stocks working well.

Cybersecurity software is where most of the action is happening. CYBR,

ZS and Rapid7 (RPD) are some names to watch in that group. Okta

(OKTA) is not profitable, but it’s having a big move. RPD is one I would

keep an eye on. It’s just now turning profitable, so it doesn’t have the long

track record of profitability favored by CAN SLIM®-style traders, but it’s

on my watchlist.

MarketSmith.com // 2019 Q3 l Q & A: Chris Gessel

A Conversation with Chris Gessel

“If a trade deal gets done, I would expect [the semiconductor sector] to continue higher.”

9


Semiconductors are interesting right now. The sector rallied off the

bottom of the December correction with the rest of the market. Aside

from a brief pullback in March, this sector was just heading up and up

until late April. This is about the time that Xilinx (XLNX) topped.

Xilinx, at the time, was the leading chip stock. It had broken out on

earnings the previous quarter and was doing well. Then it missed on Q1

earnings and gapped down 17% the next day. That day, April 25, kicked

off the correction in chips, which you can see by looking at SMH [an

ETF based on the semiconductor index]. It was kind of the canary in the

coalmine for the Nasdaq.

What’s been nice lately is that chips have rallied off the bottom and are

gaining steam. Remember, the biggest thing affecting the market right

now is the trade war with China. If a trade deal gets done, I would expect

chips to continue higher. They were an early leader before and could be a

leader again.

Pictured: SMH, an ETF that tracks the semiconductor index. Notice the steep decline starting in April 2019 and subsequent strong recovery.

VanEck Vectors Semiconductor ETF (SMH)

10


Q: What are some cautionary signs that tell you a market uptrend isn’t

“working” like it should?

The first thing to look for is when we’re just starting a confirmed uptrend.

The first line in the sand is the low of the follow-through day. I would put

an alert at the bottom of that day. Our research shows that if you close

under the low of the FTD it doesn’t necessarily mean the rally is going to

fail, but at the very least, it means you’re going to have some trouble for

a while.

The other thing is if individual stock breakouts aren’t working, that’s a

warning sign. You want leaders to be acting well during an uptrend.

The next real test for the Nasdaq and the S&P: Can they take out their

recent highs? The Nasdaq has had some bigger swings, but if you look at

the S&P, it peaked in January 2018 at 2872. We’re only 3% above that

level almost 18 months later. The broad market has really struggled to

make new highs. If we can get a clear move above the old highs, that will

be a really positive sign for the uptrend.

Q: Which IPOs have surprised you most this year, both positively and

negatively?

I love IPOs. I’ve talked about them a lot on the Investing with IBD®

podcast, and really when anyone gives me a moment to speak.

At least once a week, I go back and look at all the companies that have

come public in the last month. I sort them by date to see the most recent.

Since so many IPOs these days don’t have earnings, what I do look for is

really strong sales growth.

Chewy (CHWY) is the latest example. It’s still losing money, but it’s got

$3.5 billion in sales. So this is not your average startup. They’re really

growing sales. In the last quarter, sales growth accelerated from 59% to

67% and they had their first $1 billion quarter.

11


CHWY is a stock I would really be

watching. I would put an alert on

the high of the first day of trading

and hopefully it forms an IPO base.

They can be as short as 5 days,

though I prefer to see them longer

than that.

Some of the best trades, even on a

short-term basis, come from these

IPO bases. CrowdStrike (CRWD)

is another one; it’s growing sales in

the triple digits. Zoom (ZM) is one I

was pleasantly surprised by.

Now, on the other end of things,

it did not surprise me that Uber

(UBER) struggled right after it

went public. This idea of companies coming in at mega-cap status, $75

billion in this case… I don’t know. Sales growth has also slowed into the

20% range. They don’t have a path to profitability, which really limits the

immediate outlook.

This is why with unprofitable IPOs, unless there’s a clear path to

profitability and you’ve got high conviction, they’re much better short-

term trades where maybe you just hold them above the 10-day line, or

when it hits 20% you take half-profits to avoid giving it all back.

Q: In this issue, we’re covering advanced selling strategies. What are a few of

the technical signals that tell you it might be time to shrink or sell a position?

If you’ve got a stock that’s fundamentally strong, it’s acting really well,

and you’re up 20% but don’t want to take your profits just yet, let it ride

the 10-day moving average line. Wait until you get a close below that line

Pictured: Zoom Video Communications (ZM), a software IPO stock that Chris has been watching closely since it started trading publicly.

Zoom Video Comm CI A (ZM)

12


before you take profits. If you’ve got strong conviction, maybe you just

sell 30% or 50%.

Now let’s talk about high-conviction stocks that have a high probability

of pulling back. No one wants to give up on their biggest winners, but it’s

not a bad idea to hedge. For example, what if you’re holding one of these

“super stocks” as the market is going into a correction? It’s logical to

expect a pullback.

What I’ll do is hedge by buying put options on the stock to protect my

profit if the stock starts moving downward. I typically look for puts with

three or more months of time value with a delta of 0.50. If I want to

completely hedge my position, I buy twice as many puts as shares.

Think of it this way: you already have a huge profit on the position. If it

goes up, you’re still making money on the stock, although not as much

because of the put. If it goes sideways, that’s not a big problem, you’re

still up big on the stock.

Now let’s say the stock turns into a pumpkin and dives down. Instead of

losing your profit, you’re making even more money with the put than you

are losing on the stock because the delta is rising as the put gains value. If

the stock gets support at, say, the 50-day line, you can book the put profit

and ride the stock back up.

Q: One last question: I hear you’re an avid deep-sea fisherman. Which requires

more patience, fishing or investing?

Investing. Because if the fish aren’t biting you can always start drinking.

13

Look for newer stocks with strong sales

This screen looks for IPO stocks using Chris Gessel’s sales criteria, since many IPOs don’t turn a profit early on.

Bigger Better IPOs

COMPANY (SYMBOL) INDUSTRY GROUP RS RATING PAGE

Zoom Video Comm Cl A (ZM) Computer Sftwr-Enterprse 97 14

Zscaler Inc (ZS) Computer Sftwr-Security 96 14

Docusign Inc (DOCU) Computer Sftwr-Enterprse 91 15

Anaplan Inc (PLAN) Computer Sftwr-Enterprse 88 15

Avalara Inc (AVLR) Comp Sftwr-Spec Enterprs 86 16

Smartsheet Inc Cl A (SMAR) Computer Sftwr-Enterprse 83 16

Pinterest Inc Cl A (PINS) Internet-Content 77 17

Beyond Meat Inc (BYND) Food-Meat Products 72 17

Visit Investors.com/MSStockGuide to load the criteria for this and other

Stock Guide screens directly into your MarketSmith screener.

*All screen results are computer-generated and were run on June 28, 2019. This screen can also be found on marketsmith.com in shared screens.

Screen created by Irusha Peiris, MarketSmith Product Coach

14

ZOOM VIDEO COMM CL A(ZM ) NASDAQ 32.1 SHRS / 31.8 FLT / AVG VOL0 $88.79(OH -17%)COMPUTER SFTWR-ENTERPRSE zoom.com

6/19 EXPECTS Q2 FY20 NON-GAAP EARNINGS OF $0.01 TO $0.02 PER SHARE ON REVENUES OF $129 MIL TO $130 MIL.

SHORT INT 2.5 DAYS +7%OPTIONS ONUP/DOWN 2.0EX-DIVYIELD

GROWTH RATEEARNINGS STABEPS RANK 76PE 1505 (82.2XS&P)5 YR PE 2997 - 3708

DEBT 0%NEW CEOTIMELINESS AACC/DIST BSMR RATING C

159.03 X BK VALUEINVENTORY TO.R&D 10.0%RET ON EQUITY 5%CASH FLOW $1.1

FUNDSBANKSMGMT 1%ALPHA N/ABETA N/A

96

QTR 2QTR 1

QTR 4

QTR 3

40

50

60

70

80

90

100

110

120

PRICE SCALE

97COMPOSITE RATING$36.00IPO 4/18/1913$14151617 -0.01 $18 -0.0119 0.0320 0.03EST +0% ↑

EARNINGS (JAN) HI LOShopify SHOP 99 75Akerna KERN 99 38Paycom PAYC 98 96Coupa Soft COUP 98 76ProsHldg PRO 98 45

GROUP REL STR 99 RS EPS

281431173195228228251128143016219521724102713JUNMAYAPRMARFEBJAN 19DECNOVOCTSEPAUG

EARNINGS $SALES MIL. $DIVIDEND-PE

0.01 VS -0.01#+200%90.2 VS 37.9 +138%N/A N/A

0.01 VS -0.01#+200%90.2 VS 37.9 +138%N/A N/A

0.01 VS -0.01#+200%90.2 VS 37.9 +138%N/A N/A

0.03 VS -0.01#+400%122.0 VS 60.1 +103%N/A 3708X-- 2997X

EPS DUE 8/29 QUARTER ENDED JUL 31,18 QUARTER ENDED OCT 31,18 QUARTER ENDED JAN 31,19 QUARTER ENDED APR 30,19

R S LINE VS SP500

VOLUME

1.5M

4M

10M

ZSCALER INC(ZS ) NASDAQ 125.7 SHRS / 60.3 FLT / AVG VOL2.43MIL $76.64(OH -6%)COMPUTER SFTWR-SECURITY zscaler.comOPERATES A MASSIVE, GLOBAL CLOUD SECURITY ARCHITECTURE, DELIVERING THE ENTIRE GATEWAY SECURITY STACK

5/19 EXPECTS Q4 FY19 ADJUSTED EARNINGS OF $0.01 TO $0.02 PER SHARE ON REVENUES OF $81 MIL TO $83 MIL.

SHORT INT 2.9 DAYS -20%OPTIONS ONUP/DOWN 1.2EX-DIVYIELD


DEBT 0%NEW CEOTIMELINESS AACC/DIST CSMR RATING D

40.09 X BK VALUEINVENTORY TO.R&D 20.7%RET ON EQUITY N/ACASH FLOW $0.02

FUNDS 21%BANKS 0%MGMT 27%ALPHA 0.3BETA 2.02

42.63

48.24

42.4844.00

72.94

80.38

33.90 33.0030.72

34.21

60.02

65.3065.30

98

QTR 2QTR 1

QTR 4

QTR 3

20

30

40

50

60

70

80

PRICE SCALE

95COMPOSITE RATING$16.00IPO 3/16/1813$1415 -0.11 $16 -0.2317 -0.2618 -0.20 48 2419 0.18EST ↑20 0.19EST +6% ↑

EARNINGS (JUL) HI LOOkta A OKTA 99 12Digimrc DMRC 98 19CybArkSftw CYBR 97 99Zix ZIXI 97 70Rapid7 RPD 97 63




-0.05 VS -0.08 N/A56.2 VS 36.5 +54%N/A N/A

0.01 VS -0.06#+117%63.3 VS 39.9 +59%N/A N/A

0.09 VS -0.05#+280%74.3 VS 45.0 +65%N/A N/A

0.05 VS -0.04#+225%79.1 VS 49.2 +61%N/A 7294X-- 4908X


R S LINE VS SP500 VOLUME

400K

1.2M

3.5M

Zoom Video Comm Cl A (ZM)

Zscaler Inc (ZS)

15

MarketSmith.com // 2019 Q3DOCUSIGN INC(DOCU) NASDAQ 173.8 SHRS / 135.6 FLT / AVG VOL2.59MIL $49.71(OH -27%)COMPUTER SFTWR-ENTERPRSE DocuSign.comPROVIDES E-SIGNATURE SOLUTION THAT ENABLES BUSINESSES TO DIGITALLY PREPARE, EXECUTE, AND ACT ON AGREEMENTS.

6/19 EXPECTS Q2 FY20 REVENUES OF $218 MIL TO $222 MIL.



DEBT 71%NEW CEOTIMELINESS BACC/DIST CSMR RATING B


FUNDS 35%BANKS 0%MGMT 14%ALPHA -0.02BETA 1.61

68.35

43.35

59.62 58.3756.4256.42

50.06

38.2835.06 36.25

51.14 50.92 50.02

45.67

48

QTR 2QTR 1

QTR 4

QTR 3

20

30

40

50

60

70

80

PRICE SCALE

89COMPOSITE RATING$29.00IPO 4/27/1813$141516 -0.79 $17 -0.7418 -0.08 68 3519 0.1120 0.19EST +73% ↓





0.03 VS -0.01#+400%167.0 VS 125.5 +33%N/A N/A

0.01 VS -0.03#+133%178.4 VS 130.6 +37%N/A 3294X-- 1914X

0.06 VS 0.01 +500%199.7 VS 148.9 +34%N/A 2258X-- 604X

0.07 VS 0.01 +600%214.0 VS 155.8 +37%N/A 966X-- 463X


R S LINE VS SP500

VOLUME

700K

2M

6M

ANAPLAN INC(PLAN) NYSE 129.2 SHRS / 80.1 FLT / AVG VOL2.51MIL $50.47(OH -4%)COMPUTER SFTWR-ENTERPRSE anaplan.comPROVIDES CLOUD-BASED PLANNING PLATFORM THAT HELPS TO CONNECT ORGANIZATIONS AND PEOPLE TO MAKE DECISIONS.

5/19 RAISED FY20 REVENUES TO $326 MIL TO $331 MIL.


GROWTH RATEEARNINGS STABEPS RANK 28PE5 YR PE

DEBT 0%NEW CEOTIMELINESS AACC/DIST ASMR RATING D

21.20 X BK VALUEINVENTORY TO.R&D 20.4%RET ON EQUITY N/ACASH FLOW $-0.42


27.3029.70

41.76

20.60

23.37

33.59

98

QTR 2QTR 1

QTR 4

QTR 3

10

20

30

40

50

PRICE SCALE

87COMPOSITE RATING$17.00IPO 10/12/1813$141516 -0.44 $17 -0.3218 -0.34 29 2019 -0.6220 -0.59EST ↑





-0.15 VS -0.06 N/A57.8 VS 41.1 +41%N/A N/A

-0.15 VS -0.08 N/A62.0 VS 44.2 +40%N/A N/A

-0.13 VS -0.13 N/A69.3 VS 46.3 +49%N/A N/A

-0.16 VS -0.19 N/A75.8 VS 51.6 +47%N/A N/A


R S LINE VS SP500

VOLUME

180K

800K

3.5M

Docusign Inc (DOCU)

Anaplan Inc (PLAN)

AVALARA INC(AVLR) NYSE 73.5 SHRS / 42.6 FLT / AVG VOL1.20MIL $72.20(OH -4%)COMP SFTWR-SPEC ENTERPRS avalara.comDEVELOPS CLOUD-BASED SOFTWARE SOLUTIONS DESIGNED TO IMPROVE ACCURACY AND EFFICIENCY BY AUTOMATING

2/19 NAMED AMIT MATHRADAS COO.



DEBT 0%NEW CEOTIMELINESS BACC/DIST BSMR RATING D



44.90

32.82

53.88

74.90 75.33

32.10

28.09 28.89

53.92

63.7663.76

98

QTR 2QTR 1

QTR 4

QTR 3

PO

PPO

20

30

40

50

60

70

PRICE SCALE

85COMPOSITE RATING$24.00IPO 6/15/1813$1415 -1.18 $16 -0.8817 -0.5818 -0.68 59 2819 -0.18EST ↑20 0.04EST ↓

EARNINGS (DEC) HI LOAtlassian TEAM 97 99Appfolio APPF 97 22ClarivateA CCC 96 5Veritone VERI 95 24MicroFocus MFGP 94 99




-0.19 VS -0.17 N/A63.7 VS 50.9 +25%N/A N/A

-0.14 VS -0.09 N/A69.5 VS 55.3 +26%N/A N/A

-0.19 VS -0.15 N/A76.9 VS 58.0 +33%N/A N/A

-0.01 VS -0.16 N/A85.0 VS 61.4 +38%N/A N/A

EPS DUE 8/9 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 QUARTER ENDED MAR 31,19

R S LINE VS SP500

VOLUME

138K

450K

1.5M

SMARTSHEET INC CL A(SMAR) NYSE 87.1 SHRS / 84.5 FLT / AVG VOL1.94MIL $48.40(OH -4%)COMPUTER SFTWR-ENTERPRSE smartsheet.comPROVIDES CLOUD-BASED PLATFORM FOR EXECUTION OF WORK TO OVER 95,000 CUSTOMERS.

6/19 EXPECTS Q2 FY20 NON-GAAP LOSS OF $0.15 TO $0.16 PER SHARE ON REVENUES OF $63.0 MIL TO $64.0 MIL.



DEBT 1%NEW CEOTIMELINESS BACC/DIST ASMR RATING D



33.98

28.25

49.04

20.5022.16

20.3422.01

36.7637.6737.67

97

QTR 2QTR 1

QTR 4

QTR 3

PO

PPO

10

20

30

40

50

PRICE SCALE

82COMPOSITE RATING$15.00IPO 4/27/1813$141516 -0.14 $17 -0.1518 -0.29 33 1819 -0.3720 -0.56EST ↑





-0.08 VS -0.07 N/A42.4 VS 26.7 +59%N/A N/A

-0.11 VS -0.09 N/A46.9 VS 29.4 +59%N/A N/A

-0.07 VS -0.07 N/A52.2 VS 33.0 +58%N/A N/A

-0.12 VS -0.11 N/A56.2 VS 36.3 +55%N/A N/A


R S LINE VS SP500

VOLUME

132K

500K

1.8M

16

Avalara Inc (AVLR)

Smartsheet Inc Cl A (SMAR)

PINTEREST INC CL A(PINS) NYSE 86.3 SHRS / 85.4 FLT / AVG VOL0 $27.22(OH -22%)INTERNET-CONTENT pinterest.comPROVIDES A VISUAL DISCOVERY PLATFORM THAT HELPS USERS TO DISCOVER IDEAS FOR VARIOUS PROJECTS AND INTERESTS

5/19 EXPECTS 2019 REVENUES OF $1.055 BIL TO $1.080 BIL.



DEBT 0%NEW CEOTIMELINESS CACC/DIST BSMR RATING D



29.81

23.60

82

QTR 2QTR 1

QTR 4

QTR 3

BARRONS 4/15/19

20

25

30

35

PRICE SCALE

73COMPOSITE RATING$19.00IPO 4/18/1913$141516 -0.34 $17 -0.2418 -0.1119 -0.21EST ↓20 ↓

EARNINGS (DEC) HI LOSea Ltd A SE 99 11DHI Grp DHX 98 18Snap A SNAP 97 46Match Grou MTCH 96 88Opera Ltd OPRA 96 37




-0.07 VS -0.07 N/A161.2 VS 101.1 +59%N/A N/A

-0.03 VS -0.07 N/A190.2 VS 116.0 +64%N/A N/A

0.09 VS 0.01 +800%273.2 VS 173.4 +58%N/A N/A

-0.07 VS -0.09 N/A201.9 VS 131.4 +54%N/A N/A


R S LINE VS SP500

VOLUME

2.5M

8M

25M

BEYOND MEAT INC(BYND) NASDAQ 58.7 SHRS / 32.9 FLT / AVG VOL0 $160.68(OH -20%)FOOD-MEAT PRODUCTS beyondmeat.comMANUFACTURES, MARKETS, AND SELLS PLANT-BASED MEAT PRODUCTS IN THE UNITED STATES AND INTERNATIONALLY.

6/19 EXPECTS 2019 REVENUES OF ABOUT $210 MIL.

SHORT INT .6 DAYS -19%OPTIONS ONUP/DOWN 1.8EX-DIVYIELD


DEBT 40%NEW CEOTIMELINESS CACC/DISTSMR RATING D

121.34 X BK VALUEINVENTORY TO. 4.6XR&D 10.9%RET ON EQUITY N/ACASH FLOW $-0.42


201.88

99

QTR 2QTR 1

QTR 4

QTR 3

0

20

40

60

80

100

120

140

160

180

200

220

240

PRICE SCALE

71COMPOSITE RATING$25.00IPO 5/02/1913$141516 -0.43 $17 -0.5218 -0.5119 -0.27EST ↑20 0.07EST ↑

EARNINGS (DEC) HI LOBRF SA BRFS 96 63PilgrmsP PPC 94 16TysonFds TSN 93 70SandrFarms SAFM 90 15Pingtan Mr PME 86 5




-0.13 VS -0.19 N/A17.4 VS 5.6 +212%N/A N/A

-0.16 VS -0.12 N/A26.3 VS 9.4 +180%N/A N/A

-0.13 VS -0.12 N/A31.5 VS 11.5 +175%N/A N/A

-0.11 VS -0.10 N/A40.2 VS 12.8 +215%N/A N/A


R S LINE VS SP500

VOLUME

4M

8M

17

MarketSmith.com // 2019 Q3Pinterest Inc Cl A (PINS)

Beyond Meat Inc (BYND)

18

MarketSmith.com // 2019 Q3 l Good Trade/Bad Trade

In this edition of Good Trade / Bad Trade,

MarketSmith Coach Arnie Gutierrez shared a couple of his recent trades—one

winner and one loser—and told us what he

learned from each. Pull up the charts for

CGC and DBX and follow along to see how

you would have handled these trades!

GOOD TRADE: CANOPY GROWTH CORPORATION (CGC)

The Timeframe: August 2018 – October 2018

Stock Background: Canopy is a story play, plain and simple. I had been

researching the legal marijuana industry for stock ideas. As more and

more states (and entire countries like Canada) legalize marijuana for

medical and recreational use, this market will continue to grow to satisfy

huge new demand.

CGC is positioned as one of the early leaders in this field. Other early

leading stocks in this industry, like TLRY and CRON, were getting a lot

of headlines at the time. CGC, however, looked like they had the best

plan for sustained growth: they acquired major competitors to increase

their market share and brought in senior executives from companies like

Amazon and Walmart.

Technical Picture: Canopy Growth went public in late May 2018. Because

of the fundamental story, I had it on my watchlist from day one. I monitored

it as it built a cup base with a buy point at 36.65. I like to set price alerts for

a dollar below the pivot, which you can do in MarketSmith by hovering over

a base pattern, right-clicking and picking “Set Alert.” Then you just subtract

$1 from the pivot price, turn on email notifications and click “Done.”

Good Trade/Bad Trade

The Trader: Arnie Gutierrez, MarketSmith Coach

19


Following CGC’s August 14 earnings report, the stock gapped up over

30% the next day. Seeing gaps up within the base, especially on really

high volume, showed me the stock had some serious power heading

toward the pivot.

My Buy Point: August 20, 2018 at 37. CGC quickly hit the 36.55 buy

point on huge volume (+357%) and I bought in.

How I Held It: This was an easy one to hold—at first. I watched as it rode

the 10-day moving average line up for a couple weeks. A gain over 25%

in just a few weeks showed me this was a prime candidate for the 8-week

hold rule, so that’s what I did. It got really hard to hold on September 13

during a huge drop. CGC pierced the 21-day line in big volume but closed

above it, though it gave back over 13% in the process. I still wanted to give

it more room based on the story, so I held.

My Sell Point: October 19, 2018 at 46. CGC broke down through the

50-day line on above-average volume, which was my cue to sell. This was

the 4th day in a row with a big loss, so that only reinforced the fact that I

should book my profits on this trade. I still liked the story, but the technical

indicators were too loud to ignore. It went on to close below my original

buy point just 10 days later, so I don’t regret the move.

My 3 Takeaways:

• “Blue skyscrapers” (gains on really high volume) coming out of a base

indicate high potential for a strong breakout.

• As a stock moves up more and more, do more research on it. I felt this

stock was the strongest of the legal marijuana industry, giving me

confidence to keep holding.

• Watch for technical sell signals before you give all your profits back.

When CGC broke the 50-day, I walked away and cashed in my chips.

20

BAD TRADE: DROPBOX (DBX)

The Timeframe: June 2018 – July 2018

Stock Background: Dropbox was one of the bigger-name tech IPOs from

2018. They provide cloud storage to over 500 million users across 180

countries. I was familiar with the product, since I personally use it, but

I was also aware that the product isn’t exactly unique. Competitors like

Box (BOX), Microsoft (MSFT) OneDrive, Google (GOOGL) Drive and

Amazon (AMZN) Drive can all give DBX a well-financed fight in the cloud

storage arena.

As a rule, I don’t buy IPO stocks on day one; I wait for a base to form

before buying. IPOs can be very volatile, almost speculative, so I prefer

ones that are already showing profitability. In their first earnings report

as a public company, Dropbox had earnings per share of 0.08. That’s not

huge by any means, but it is positive, and a heck of a lot better than some

other tech IPOs (looking at you, UBER and LYFT).

Technical Picture: Dropbox started building a 9-week consolidation

base in Mid-April 2018, less than a month after going public. The base

featured low volume and lots of tight price ranges—things you really

want to see in a base. Because of the nice technical setup and the story, I

had it high on my watchlist.

My Buy Point: June 14, 2018 at 35. When DBX blasted through a 34.93

buy point on sky-high volume (+719%), I bought a position.

How I Held It: Four days later, I was already up over 20%. That’s what

you call a nice jump. Now what I should have done was sell on June 18

when I would have been up almost 25% at the intraday high. That’s the

classic William O’Neil sell rule: take profits at 20-25%. But I got greedy

and decided to hold for a bigger run.

MarketSmith.com // 2019 Q3 l Good Trade/Bad Trade

21


My Sell Point: July 5, 2018 at 31.50. Most stocks will retest the pivot

price after a breakout. DBX didn’t just retest it; it broke through the

pivot on June 22 like somebody dropped an anvil. I sold my position on

July 5 when it pierced the 50-day line.

My 3 Takeaways:

• My big mistake was not taking 25% profits when I had them. I turned

a winner into a loser.

• Month-old IPOs are not known for slow and steady gains. Again,

don’t be afraid to take profits and buy back in later, if a good setup

presents itself.

• Especially with IPOs, using technical sell signals (like retesting the pivot

or breaking the 21-/50-day lines) can help prevent a complete roundtrip.

Sell point: 31.50Reason: Broke 50-day line

Buy point: 35Reason: Breakout on huge volume

Dropbox Inc CI A (DBX)

22

Find high-quality stocks with strong price action

This screen looks for stocks with the kind of fundamentals favored by institutions, plus strong technical traits like a 90+ Relative Strength Rating and high average volume.

Institutional-Quality Movers

COMPANY (SYMBOL) INDUSTRY GROUP RS RATING PAGE

eHealth Inc (EHTH) Insurance-Brokers 99 23

The Trade Desk Inc Cl A (TTD) Comml Svcs-Advertising 99 23

CyberArk Software Ltd (CYBR) Computer Sftwr-Security 98 24

Globant SA (GLOB) Computer-Tech Services 98 24

Kirkland Lake Gold Ltd (KL) Mining-Gold/Silver/Gems 98 25

Universal Display Corp (OLED) Elec-Misc Products 98 25

Visit Investors.com/MSStockGuide to load the criteria for this and other

Stock Guide screens directly into your MarketSmith screener.

*All screen results are computer-generated and were run on June 28, 2019. This screen can also be found on marketsmith.com in shared screens.

Screen created by Arnie Gutierrez, MarketSmith Product Coach

23

MarketSmith.com // 2019 Q3eHealth Inc (EHTH)

The Trade Desk Inc Cl A (TTD)

EHEALTH INC(EHTH) NASDAQ 22.6 SHRS / 21.5 FLT / AVG VOL533250 $86.10(OH 0%)INSURANCE-BROKERS ehealth.comHEALTH INSURANCE BROKERS FOR INDIVIDUALS, FAMILIES/SMALL BUSINESSES VIA 6 WEBSITES IN 50 STATES, D.C./CHINA.

4/19 RAISED 2019 ADJUSTED EARNINGS GUIDANCE TO $1.54 TO $1.73 PER DILUTED SHARE ON REVENUES TO $315 MIL TO $335 MIL.

SHORT INT 3 DAYS +1%OPTIONS ON NY/PHUP/DOWN 1.4EX-DIVYIELD


DEBT 2%NEW CEOTIMELINESS AACC/DIST ASMR RATING B



32.96

40.71

67.44

73.71

22.2925.98

53.2749.19

99

QTR 2QTR 1

QTR 4

QTR 3

PO

PPO

10

20

30

40

50

60

70

80

90

PRICE SCALE

98COMPOSITE RATING(W)13$ 0.37 $ 48 1414 -0.01 63 1815 0.43 25 816 0.17 15 617 1.69 28 1018 1.00 40 1319 1.67EST +67% ↑20 2.07EST +24% ↓

EARNINGS (DEC) HI LOErieIndmty ERIE 98 86Fanhua FANH 93 84Aon AON 92 82WillisTowe WLTW 90 93GallaghrAr AJG 88 77




-0.40 VS 0.01 N/A32.7 VS 34.6 -6%N/A 16X-- 8X

-0.22 VS -0.04 N/A40.8 VS 31.5 +30%N/A 31X-- 15X

1.61 VS 1.57 +3%134.9 VS 83.1 +62%N/A 46X-- 26X

0.33 VS -0.07#+571%68.8 VS 43.1 +60%N/A 75X-- 41X

EPS DUE*7/26 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 QUARTER ENDED MAR 31,19

R S LINE VS SP500

VOLUME

52K

174K

650K

*THE TRADE DESK INC CL A(TTD) NASDAQ 38.5 SHRS / 37.4 FLT / AVG VOL1.71MIL $227.78(OH -11%)COMML SVCS-ADVERTISING thetradedesk.comSELF-SERVICE PLATFORM FOR AD BUYERS TO PURCHASE AND MANAGE DATA-DRIVEN DIGITAL ADVERTISING CAMPAIGNS

5/19 RAISED 2019 ADJUSTED EBITDA GUIDANCE TO ABOUT $188.5 MIL.


GROWTH RATE +69%EARNINGS STAB 9EPS RANK 99PE 82 (4.5XS&P)5 YR PE 29 - 88

DEBT 0%NEW CEOTIMELINESS AACC/DIST BSMR RATING A



97.87

161.50

149.00

214.70

232.70

83.66

105.03105.34 102.35

178.30173.60

98

QTR 2QTR 1

QTR 4

QTR 3

60

80

100

120

140

160

180

200

220

240

260

PRICE SCALE

99COMPOSITE RATING$18.00IPO 9/21/1613$14 0.01 $15 0.5616 0.87 33 2217 1.60 67 2618 2.70 161 4019 2.89EST +7% ↓20 3.63EST +26% ↑

EARNINGS (DEC) HI LOTelaria TLRA 98 53Fluent FLNT 98 45SocialReal SRAX 97 15Cbdmd YCBD 97 7Marchx MCHX 96 76




0.60 VS 0.52 +15%112.3 VS 72.8 +54%N/A 54X-- 29X

0.65 VS 0.35 +86%118.8 VS 79.4 +50%N/A 88X-- 48X

1.09 VS 0.54 +102%160.5 VS 102.7 +56%N/A 83X-- 48X

0.49 VS 0.34 +44%121.0 VS 85.7 +41%N/A 80X-- 51X


R S LINE VS SP500

VOLUME

400K

1.2M

3.5M

*CYBERARK SOFTWARE LTD(CYBR) NASDAQ 35.0 SHRS / 21.7 FLT / AVG VOL954040 $127.84(OH -7%)COMPUTER SFTWR-SECURITY cyberark.comISRAELI PROVIDER OF NETWORK SECURITY SOFTWARE FOCUSED ON PROTECTING PRIVILEGED ACCOUNTS

5/19 EXPECTS 2019 NON-GAAP EARNINGS OF $2.10 TO $2.16 PER DILUTED SHARE ON REVENUES OF $415.0 MIL TO $419.0 MIL.



DEBT 0%NEW CEOTIMELINESS AACC/DIST CSMR RATING A



69.97

81.2484.21

79.16

138.73135.58

59.02

65.85 64.66 65.90

118.50118.50

97

QTR 2QTR 1

QTR 4

QTR 3

50

60

70

80

90

100

110

120

130

140

PRICE SCALE

99COMPOSITE RATING$16.00IPO 9/24/1413$ 0.28 $14 0.49 47 2215 1.00 76 3316 1.26 59 3117 1.16 55 3918 2.06 84 4019 2.16EST +5% ↑20 2.54EST +18% ↑

EARNINGS (DEC) HI LOOkta A OKTA 99 12Zscaler ZS 98 76Digimrc DMRC 98 19Zix ZIXI 97 70Rapid7 RPD 97 63




0.36 VS 0.21 +71%77.7 VS 57.5 +35%N/A 57X-- 42X

0.48 VS 0.25 +92%84.7 VS 64.8 +31%N/A 60X-- 46X

0.89 VS 0.41 +117%109.1 VS 80.4 +36%N/A 61X-- 41X

0.56 VS 0.32 +75%95.9 VS 71.8 +34%N/A 58X-- 44X


R S LINE VS SP500

VOLUME

148K

450K

1.4M

*GLOBANT SA(GLOB) NYSE 35.9 SHRS / 33.4 FLT / AVG VOL420160 $101.05(OH -4%)COMPUTER-TECH SERVICES globant.comLUXEMBOURG PROVIDER OF IT SERVICES WITH 40 CENTERS IN ARGENTINA, URUGUAY, COLOMBIA, BRAZIL, MEXICO, PERU

5/19 EXPECTS 2019 ADJUSTED EARNINGS OF $2.13 TO $2.21 PER DILUTED SHARE ON REVENUES OF $638 MIL TO $646 MIL.

SHORT INT 5 DAYS -28%OPTIONS ONUP/DOWN 2.4EX-DIVYIELD



13.73 X BK VALUEINVENTORY TO.R&D N/ARET ON EQUITY 21%CASH FLOW $2.35


59.97

66.41

59.92

74.00

53.62 53.24

46.3048.95

50.91

67.60

75.00

98

QTR 2QTR 1

QTR 4

QTR 3

40

50

60

70

80

90

100

PRICE SCALE

99COMPOSITE RATING$10.00IPO 7/18/1413$ 0.44∆ $14 0.77∆ 15 1015 0.98∆ 38 1316 1.09 47 2217 1.28 47 3018 1.74 66 4219 2.20EST +26% ↓20 2.69EST +22% ↓

EARNINGS (DEC) HI LOEndava A DAVA 97 97CSP CSPI 96 20Sapiens SPNS 95 86Perficient PRFT 95 80CDW CDW 92 96




0.40 VS 0.26 +54%127.9 VS 99.6 +28%N/A 41X-- 33X

0.46 VS 0.37 +24%134.6 VS 109.7 +23%N/A 43X-- 35X

0.50 VS 0.39 +28%140.1 VS 115.4 +21%N/A 39X-- 30X

0.50 VS 0.38 +32%146.2 VS 119.7 +22%N/A 43X-- 31X



96K

300K

1M

24

CyberArk Software Ltd (CYBR)

Globant SA (GLOB)

*KIRKLAND LAKE GOLD LTD(KL ) NYSE 209.7 SHRS / 201.3 FLT / AVG VOL1.61MIL $42.92(OH -2%)MINING-GOLD/SILVER/GEMS klgold.comCANADIAN FIRM ENGAGED IN THE PROVISION OF MINING AND MINERAL EXPLORATION IN CANADA AND AUSTRALIA.

3/19 NAMED JEFFREY PARR INTERIM CHRMN, EFFECTIVE MAY 7, 2019, REPLACING ERIC SPROTT WHO WILL RETIRE.

SHORT INT 3.6 DAYS -6%OPTIONS ONUP/DOWN 1.4EX-DIV 6/27YIELD 0.4%



7.77 X BK VALUEINVENTORY TO. 18.2XR&D 6.5%RET ON EQUITY 24%CASH FLOW $2

FUNDS 39%BANKS 1%MGMT 4%ALPHA 0.32BETA -0.26

23.8622.34

36.74

17.2618.12

29.1530.57

98

QTR 2QTR 1

QTR 4

QTR 3

10

20

30

40

50

PRICE SCALE

99COMPOSITE RATING13$1415 0.08 $16 0.3217 0.75 15 1018 1.34 26 1319 2.23EST +66% ↓20 2.25EST +1% ↑

EARNINGS (DEC) HI LOTanzanian TRX 99 25GoldFields GFI 98 77AnglogoldA AU 98 76SibanyeGol SBGL 98 5NovaGold NG 96 40




0.30 VS 0.19 +58%214.7 VS 189.9 +13%$0.02 24X-- 19X

0.29 VS 0.17 +71%222.7 VS 176.7 +26%$0.02 25X-- 17X

0.52 VS 0.31 +68%280.3 VS 212.4 +32%$0.03 23X-- 16X

0.53 VS 0.25 +112%304.9 VS 198.2 +54%$0.03 30X-- 21X



500K

1.6M

5.5M

UNIVERSAL DISPLAY CORP(OLED) NASDAQ 47.2 SHRS / 42.0 FLT / AVG VOL773602 $188.06(OH -2%)ELEC-MISC PRODUCTS udcoled.comDESIGNS ORGANIC LIGHT EMITTING DIODE DEVICES FOR FLAT PANEL DISPLAYS USED IN THE CONSUMER ELECTRONICS MARKET.

5/19 EXPECTS 2019 REVENUES OF $405 MIL TO $425 MIL.

SHORT INT 4.8 DAYS +5%OPTIONS ON AM/MSUP/DOWN 1.0EX-DIV 6/13YIELD 0.2%


DEBT 0%NEW CEOTIMELINESS BACC/DIST BSMR RATING B

12.86 X BK VALUEINVENTORY TO. 4.7XR&D 21.7%RET ON EQUITY 9%CASH FLOW $0.3


130.60125.55

130.01

99.48

190.00

83.0378.78

143.55143.55

98

QTR 2QTR 1

QTR 4

QTR 3

DIVINC

60

80

100

120

140

160

180

200

PRICE SCALE

98COMPOSITE RATING(W)(C)13$ 0.70 $ 39 2414 0.90 39 2215 0.94 57 2516 1.02∆ 74 4017 2.47 192 5518 1.24 209 7819 2.43EST +96% ↑20 3.75EST +54% ↑

EARNINGS (DEC) HI LORschFront REFR 99 28Virnetx VHC 97 31Astronova ALOT 94 88Trimble TRMB 90 61ZebraTech ZBRA 89 95




0.23 VS 0.99 -77%56.2 VS 102.5 -45%$0.06 50X-- 34X

0.48 VS 0.28 +71%77.6 VS 61.7 +26%$0.06 82X-- 35X

0.40 VS 0.95 -58%70.1 VS 115.9 -39%$0.06 79X-- 46X

0.66 VS 0.13 +408%87.8 VS 43.6 +101%$0.10 131X-- 44X


R S LINE VS SP500

VOLUME

350K

1M

2.8M

25

MarketSmith.com // 2019 Q3Kirkland Lake Gold Ltd (KL)

Universal Display Corp (OLED)

26

MarketSmith Smart Alerts are designed to go beyond a set price, and

instead focus on technical signals that may serve as alternative buy

or sell points. Click on the Alerts icon at the top right of the chart and

select “Manage Alerts,” then click on the “Smart Alerts” tab to receive a

notification when a stock meets any of these five criteria.

Features Highlight: Smart Alerts

Pullback to 10-week line helps investors identify a point where they

might want to add to their positions when the market is in a solid

uptrend. The price must still be higher than the pivot of the most recent

base, meaning the breakout is still viable.

50-Day Break on Volume is a potential warning that a breakout might

be failing. The alert will trigger if a stock falls 5% below the 50-day in

27

volume 50% or more above average. The 50-day Break alert only triggers

for stocks that have broken out of a base and had been in an uptrend

prior to the break.

50-day SMA (Simple Moving Average) triggers when the stock is

moving down to or up to the 50-day line. This area is a critical support

area for institutions. If the stock is moving down, look to see if there’s

institutional support to push the stock price up. Consequently, as a stock

moves up to the 50-day SMA, this can affirm a stock is forming a base

with strength to complete the pattern, a sign of institutional support and

a possible breakout.

10-day SMA triggers when a stock is above the 10-day moving average

and pulling back. Breaking out and staying above the 10-day SMA, while

continuing to bounce higher, can signal strong momentum for a stock run.

21-day SMA triggers when a stock is above the 21-day moving average

and pulling back. If a stock falls below the 21-day line, it might be a sign

to exit the position or wait for institutional support.

Custom Trendline Alerts

To know when a channel line is broken (see this issue’s feature article for

more on that), you can draw your own trendline and set a custom alert.

To draw a trendline, right-click on the chart and select “Temporary Line

Pen.” (Note: you can also draw a trendline by holding down the “Ctrl”

key while clicking and dragging your mouse). Once you have drawn

your trendline, hover over it with your cursor, right-click, and select

“Set Alert.” The trigger for trendline alerts is determined by the location

of the line, and it is recalculated and extended each day. The alert is

triggered when a stock’s current price crosses the trendline.

28

Resources

MarketSmith Coaching

Questions about MarketSmith? Call us today and talk to a Product Coach!

Whether you have a question about earnings season or you just want

some perspective on recent market action, our Product Coaches are here

for you. Best of all, this service is free with your MarketSmith subscription!

Here are a few investing-related topics you can call us about today:

• Building a better research routine

• Finding stocks that fit your investing style

• Identifying buy and sell points

• Gauging supply and demand via volume

Call a coach at 800-831-2525, Monday-Friday, 9am-7pm ET.

__________________________________________________________________________________

MarketSmith University

Looking for a faster way to get started? We’ve taken everything a

MarketSmith member needs to know and gathered it into one place!

Check out MarketSmith University from the members home page,

MarketSmith.investors.com. It’s located in the center of the page under

the “Getting Started” section.

11 Essential Lessons: When you click on the link, you’ll be taken to the

core curriculum. These 11 webinars were personally selected by our

coaches to give you a roadmap to better investing. You’ll learn all about

big-picture concepts like technical and fundamental stock data, as well

as practical how-to guides on research routines and watch lists.

Continue Your Education: Once you’ve absorbed these 11 lessons and

you’re on your way to mastering MarketSmith, you’ll want to check out

the full range of educational webinars available. If you click the drop-

down menu next to the 11 core lessons, you’ll see additional topics that

you can explore any time.

29

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20 19 - MarketSmith · 2019-07-11 · EXCLUSIVELY FOR MARKETSMITH MEMBERS AUGUST 27, 2019 1:15pm PT...

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