In Monday’s 8/10 Game Plan this is how we presented the following 3 ideas as we looked for them to retest prior breakout triggers. Two of the three names did so and have rebounded nicely. It is not uncommon for stocks to retest those triggers to see how valid the move was. When it does it is valuable information can be taken. If it gathers steam it is an excellent sign. Conversely if the breakout pivot fails to hold it is often a sign of danger going forward. CDW and DPS are higher by more than 3% and HDP currently sits right at its 26.40 double bottom breakout trigger. The last 2 sessions found support at their 50day SMAs reversed nicely CLOSING well in the upper half of their daily ranges.
Stocks that can be bought as they retest prior breakout triggers are CDW HDP DPS. CDW is an IT play higher by 11% YTD and 26% over the last one year period. It just celebrated its second birthday last month and is up 109% since inception. It has been up 3 of its last 4 earnings reports by 7.5, .1 and 3.7% on 8/3, 5/7 and 11/6 (it fell 4.3% on 5/7 slicing its 50 day SMA). After a 4 of 5 week losing streak between weeks ending 6/26-7/25 where it lost 9% and all 5 weeks CLOSED at lows for weekly range it has put up back to back strong weekly gains of 6.9 and 8.3%. On 8/3 it took out a 37.61 double bottom trigger and enter within 2% of the pivot at 38.35. The pivot was slightly below the 50 day SMA making it failure prone but the relative strength recently trumps it.