{"id":4327,"date":"2015-03-05T07:01:48","date_gmt":"2015-03-05T12:01:48","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=4327"},"modified":"2015-03-05T09:58:02","modified_gmt":"2015-03-05T14:58:02","slug":"top-stocks-march-2015","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/top-stocks-march-2015\/","title":{"rendered":"2 Hot Stocks To Buy While The S&#038;P And Nasdaq Take A Rest"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-4331\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2015\/03\/fire.png\" alt=\"hot stocks\" width=\"100\" height=\"146\" title=\"\">Although the main stock market indexes have been in pullback mode the past few days, overall market conditions remain bullish.<\/p>\n<p>As such, the current pullback presents a <strong>lower-risk buying opportunity for top\u00a0stocks and ETFs<\/strong> that have been showing relative strength with tight chart patterns.<\/p>\n<p>Two such swing trade buy setups we are stalking for potential buy entry in<em> <a title=\"The Wagner Daily newsletter\" href=\"https:\/\/www.morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"nofollow\">The Wagner Daily<\/a> <\/em>over the coming days are biotechnology firm Cytokinetics ($CYTK) and software development company Rubicon ($RUBI).<\/p>\n<p>Let&#8217;s take a quick look at why these equities\u00a0may be\u00a0excellent stocks to buy in the coming days&#8230;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/top-stocks-march-2015\/#Small-cap_poised_for_big_breakout_CYTK\" >Small-cap poised for big\u00a0breakout ($CYTK)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/top-stocks-march-2015\/#Crossing_The_Rubicon_RUBI\" >Crossing The Rubicon ($RUBI)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/top-stocks-march-2015\/#Key_Support_Levels_To_Watch_S_P_500\" >Key Support Levels To Watch (S&amp;P 500)<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Small-cap_poised_for_big_breakout_CYTK\"><\/span>Small-cap poised for big\u00a0breakout ($CYTK)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>$CYTK is a small-cap biotech\u00a0stock that is setting up for a base breakout from a first-stage base (see\u00a0<em><a href=\"https:\/\/www.amazon.com\/gp\/product\/0071614133\/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0071614133&amp;linkCode=as2&amp;tag=morptradgrou-20&amp;linkId=H5ETURYIMQPUVW2D\" target=\"_blank\" rel=\"noopener\">How to Make Money in Stocks: A Winning System in Good Times and Bad<\/a><\/em><img loading=\"lazy\" decoding=\"async\" style=\"border: none !important; margin: 0px !important;\" src=\"https:\/\/ir-na.amazon-adsystem.com\/e\/ir?t=morptradgrou-20&amp;l=as2&amp;o=1&amp;a=0071614133\" alt=\"\" width=\"1\" height=\"1\" border=\"0\" title=\"\">\u00a0by William O Neil for a great explanation of base reading and stage counts).\u00a0Take a look:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4328\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2015\/03\/150305CYTK.png\" alt=\"$CYTK stock chart\" width=\"550\" height=\"600\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2015\/03\/150305CYTK-101x110.png 101w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2015\/03\/150305CYTK-275x300.png 275w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/p>\n<p>$CYTK grabbed our attention when it gapped\u00a0sharply higher about three weeks ago, on volume that was more than 400% greater than the stock&#8217;s average daily volume (see black rectangle on the chart).<\/p>\n<p>Since then, $CYTK has been trading in a tight, sideways range above its 50-day moving average, with both the 10 and 20-day moving averages sitting above the 50-day moving average.<\/p>\n<p>The combination of the high volume gap, price action above 50-day MA, and the 20-day MA trading above 50-day MA means the stock possesses 3 of the <a title=\"learn more\" href=\"https:\/\/www.morpheustrading.com\/blog\/top-5-qualities-stock-breakouts\/\" target=\"_blank\">top 5 qualities of the best stock breakouts<\/a>.<\/p>\n<p>If the price of $CYTK rallies\u00a0above the March 4 high (marked by the horizontal line), the stock could attract enough buying interest to enable it to <strong>break out above its tight, three-week range.<\/strong><\/p>\n<p>Regular subscribers to <strong><a title=\"Get started now\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\">our nightly stock picking newsletter<\/a><\/strong> should note our preset buy trigger, stop, and target prices for this trade setup in the &#8220;Watchlist&#8221; section at the top of today&#8217;s report.<\/p>\n<p>If $CYTK meets our exact criteria for buy entry, we will buy the stock with <em>reduced<\/em> share size because it is\u00a0not an A-rated setup.<\/p>\n<p>Liquidity in this small-cap stock is also a bit on the light side, which we compensate for by lowering our share size.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Crossing_The_Rubicon_RUBI\"><\/span>Crossing The Rubicon ($RUBI)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To &#8220;<a href=\"https:\/\/en.wikipedia.org\/wiki\/Rubicon\" target=\"_blank\" rel=\"noopener\">cross the Rubicon<\/a>&#8221; means to pass a point of no return.<\/p>\n<p>Given the solid, earnings-driven breakout from a first stage base two weeks ago, it indeed appears The Rubicon Project ($RUBI) has definitively passed the point of no return (to its prior trading range).<\/p>\n<p>After gently retracing from the February 25 high of its recent breakout and trading in a tight range for more than a week, the 10-day moving average has caught up to the price.<\/p>\n<p>As with the $CYTK setup, the stock also shares the key breakout attributes of a high volume gap, trading above the 50-day MA, with the 20-day MA above the 50-day MA:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/~rick\/\/charts\/2014\/150305RUBI.png\" alt=\"$RUBI PULLBACK ENTRY\" title=\"\"><\/p>\n<p>For this momentum trade setup, we are looking for <strong>potential buy entry on a slight pullback<\/strong> from the March 4 move (the price must drop to the\u00a0exact buy limit order listed in today&#8217;s <a title=\"Sign up now\" href=\"https:\/\/www.MorpheusTrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"nofollow noopener\"><em>Wagner Daily<\/em> <\/a>in order to trigger the trade).<\/p>\n<p>RUBI is not an A-rated stock, but does have strong revenues and two quarters in a row of improving EPS growth.<\/p>\n<p>Although we are primarily technical traders, most leading stocks in the market share these two fundamental traits.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Support_Levels_To_Watch_S_P_500\"><\/span>Key Support Levels To Watch (S&amp;P 500)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Our rule-based trading system forces us to focus much more on\u00a0the performance of leading stocks, rather than the price action of the main stock market indexes.<\/p>\n<p>Nevertheless, because we are trend traders, it is always beneficial to make sure the broad-based indexes remain healthy as well (put the wind at your back).<\/p>\n<p>Despite the substantial pullback of the past few days, the <strong>S&amp;P 500 technically remains healthy<\/strong>.<\/p>\n<p>As shown on the chart below, the benchmark index bounced off near-term support of both its 20-day MA and prior highs yesterday (March 4):<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4329\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2015\/03\/150305SPY.png\" alt=\"$SPY chart - March 2015\" width=\"550\" height=\"600\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2015\/03\/150305SPY-101x110.png 101w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2015\/03\/150305SPY-275x300.png 275w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/p>\n<p>Given the bullish intraday price reversal that converged with two near-term support levels, the March 4 low of 2,087 now becomes a key price level to watch.<\/p>\n<p>If the 2,087 support level fails to hold, next support is near the 2,065 level, which represents convergence of the rising 50-day moving average and the 10-week moving average (similar to 50-day moving average).<\/p>\n<p>As long as the S&amp;P 500 remains above that 2,065 level <em>and<\/em> leading stocks continue to hold up, the <strong>current pullback in the market must be viewed as a buying opportunity.<\/strong><\/p>\n<p>Having an objective, rule-based market timing system (such as <a title=\"5 modes of our market timing system\" href=\"https:\/\/www.morpheustrading.com\/blog\/market-timing-system\/\" target=\"_blank\">this one<\/a>) is a great way to ensure you remain positioned to take advantage of profitable opportunities when the time is right (and on the sidelines otherwise).<\/p>\n<p><em>What do you think about $CYTK and $RUBI? What other top stocks are on your watchlist right now?\u00a0<\/em><\/p>\n<div class=\"cfmonitor\" style=\"padding-top: 30px;\"><center><script src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\" async=\"\"><\/script><!-- Footer of content - Large --> <ins class=\"adsbygoogle\" style=\"display: inline-block; width: 336px; height: 280px;\" data-ad-client=\"ca-pub-7565144363001883\" data-ad-slot=\"6017996961\"><\/ins><script>\/\/ <![CDATA[\n(adsbygoogle = window.adsbygoogle || []).push({});\n\/\/ ]]><\/script><\/center><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The current pullback in the stock market is a buying opportunity for the top stocks with relative strength and bullish chart patterns. Here are two potential breakout stocks setting up for buy entry now&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5],"tags":[],"class_list":["post-4327","post","type-post","status-publish","format-standard","hentry","category-stock-picks-analysis"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=4327"}],"version-history":[{"count":0,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4327\/revisions"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=4327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=4327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=4327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}