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Advancers
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June 27, 2016, 2:52 p.m. EDT

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About Kevin Marder

Kevin Marder is a guest columnist and a co-founder of MarketWatch. He is principal of Marder Investment Advisors Corp. and a contributor to The Gilmo Report. Previously, he served as chief market strategist for Ladenburg Thalmann Co. and developed institutional fixed-income risk management software for Capital Management Sciences.

/conga/trading-deck/bios/marder_kevin.html 173642
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By Kevin Marder

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Revenue growth has been exceptionally consistent, with rates of 42%, 45%, 42%, 43% and 42% recorded over the most recent quarters, respectively. Growth in the number of mutual-fund sponsors has been torrid of late, up from 188 in September 2015 to 283 in December 2015 to 331 in March 2016.

Technically, XRS is forming a base-on-top-of-a-base pattern. Aggressive speculators might consider the May 25 high of 58.99 (see chart below) as a pivot for a cheater entrance ahead of the formal 60.44 base top. Friday's action was a positive, as price found support at its 50-day moving average line and rallied to close in the upper quintile of the day's range.

As always, a protective stop should be used to mitigate risk, along with a starter position that is half normal size, or less. This initial position could be added to if the stock proves itself.

For a larger chart, please click here .

Chart created using MarketSmith . ©2016 MarketSmith Incorporated. All rights reserved.

Monster Beverage /zigman2/quotes/205899417/composite MNST +0.69% makes and distributes a number of energy drinks. The company, which counts Coca-Cola /zigman2/quotes/209159848/composite KO -0.49% as a minority shareholder, should post earnings growth of 32% this year and 20% next, according to forecasts by most analysts.

The stock is close to completing a double-bottom-with-handle base, and is under mild accumulation, as seen in the chart below. Aggressive speculators may consider using the June 9 high of 158.69 as a possible entrance pivot.

For a larger chart, please click here .

Chart created using MarketSmith . ©2016 MarketSmith Incorporated. All rights reserved.

The best means of knowing when the Brexit coast is clear for the momentum player lies in the behavior of leading growth stocks and the major averages.

A number of these leading issues are mentioned above and in the June 17 column. This type of analysis is where the rubber meets the road and can go a long way toward keeping a participant on the right side of the market. As well, it will be incumbent upon the Nasdaq Composite and S&P 500 to make a low and then stage a positive test of that low. This may take some time.

As noted in last week's column, "... momentum players should play things close to the vest, perhaps postponing fresh-money buys until the market finds its footing ."

Kevin Marder

For intraday market comments and stock ideas: https://twitter.com/mardermarket

Earnings estimate data provided by Thomson Reuters.

The views contained herein represent those of Marder Investment Advisors Corp. ("MIAC"). At the time of this writing, of the stocks mentioned in this report, Kevin Marder and/or MIAC held no positions, though positions are subject to change at any time and without notice. This information, which may have been previously disseminated, is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. Past performance of any security or strategy is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to MIAC, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Neither MIAC nor any of its affiliates will be liable, and we accept no liability whatsoever, for any losses any recipient of this report may suffer as a result of his or her or its use of this report or any of its contents.

/zigman2/quotes/205899417/composite
US : U.S.: Nasdaq
$ 58.40
+0.40 +0.69%
Volume: 2.09M
Nov. 21, 2019 4:00p
P/E Ratio
29.42
Dividend Yield
N/A
Market Cap
$31.19 billion
Rev. per Employee
$1.21M
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/zigman2/quotes/209159848/composite
US : U.S.: NYSE
$ 52.96
-0.26 -0.49%
Volume: 7.86M
Nov. 21, 2019 6:30p
P/E Ratio
29.50
Dividend Yield
3.02%
Market Cap
$228.02 billion
Rev. per Employee
$506,342
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