Fishing for Momentum

Stocks are a bit sluggish out of the gate this morning, with the FOMC later this week the likely cherry on top of 2016 before Christmas and New Year's empty out many a trading desk afterwards. 

In terms of identifying quality momentum, growth stocks have been taking a backseat to the rotations into value-oriented areas of the market of late, like banks, transports, and materials. As evidence, note hot-to-trot summer IPO winners like ACIA and TWLO now reduced to daily drubbings where longs simply breathe a sigh of relief to see those stocks not down more than 5%. 

Instead, for Members we have been ferreting out the recent IPOs acting a bit better. CWH is a name we noted last week, and that continues to thrive this morning.

In addition, ELF is a discount makeup firm. On the daily chart, below, you can see the potential for another breakout higher is the stock can hold over $31.55 or so. 

Clearly, tech, biotech, and general growth stocks have become an afterthought this autumn. There is a possibility for a rotation down to them just in time for Christmas. But, until then, we are keeping track of those charts better set-up than the likes of ACIA TWLO.