Market continues to digest gains as index leader Nasdaq is up five weeks in a row. The past week closed tight in Holiday shorten (light volume) week. We experienced one distribution day on Wednesday but there has been zero damage to our leaders.
Next week there are two nice set ups for potential add on buys to existing holdings.
CREE.....3 Week Tight set up for what has been one of the leading stocks since early 2009. CREE had quarterly earnings growth of +90% and quarterly sales growth of +35%. CREE has a new buy point at $72.50 (10 cents higher than previous 3 week high). Keep in mind CREE reports earnings on approximately April 21st.
CMG......3 Week Tight set up as well. All of the restaurant stocks have had nice moves (CAKE, DIN & PNRA). My opinion, CMG is the leader in the group with quarterly earnings growth of 90% and quarterly sales growth of 12%. It also has a ROE of 19%. CMG has a new buy point of $117.21. CMG also has upcoming earnings around April 22nd.
Lastly, previous gigantic mover CAGC has fallen back into its base after earnings news on Wednesday. This one needs some time but did undercut previous low to set up a potential Double Bottom base down the road. Will need to monitor to see if it receives support at the 50 day moving average (which I suspect it will).
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