In this interview, Luke take’s a look at 2 growth stocks showing unusual buy activity. Intuit Inc. (INTU) and The Trade Desk, Inc. (TTD) are household names for MAP and both continue to be on our radar. They each sport strong fundamentals, but most importantly they are gaining alongside unusual trading activity.
Click below to watch the full interview.
There is no doubt that the V-shaped recovery for stocks has been swift. You can see below the returns for many indices since the Christmas low. Possibly the most impressive is the +30.5% return for the PHLX Semiconductor Index:
For MAP, our focus is in identifying the leaders. The following 2 stocks have been showcased in our research continuously because the data suggested there was large demand for the shares. Since the 12/24/18 low, Xilinx, Inc. (XLNX) is +60.47% & Keysight Technologies Inc. (KEYS) is +55.6%. Bottom line, if you are going to out-perform a bullish market, one way to do it is by finding the leading stocks. Looking for unusual institutional activity in shares is one way to find the leaders of tomorrow.
Well, that was fast! On Christmas Eve we were oversold and here we are just 6 weeks later, and we hit overbought today! The last time the ratio went above 80% (overbought) was 1/24/18 (you can read that blog post here). Markets dropped sharply immediately after that.
Simply put, unusual buying in stocks relative to selling is unsustainable at this level. Once our ratio starts falling, we expect a market pullback. We are long-term bulls; pullbacks are great buying opportunities for outlier stocks.
More details to follow in Sunday’s issue of the MAP View for subscribers.