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June 9, 2016, 8:18 a.m. EDT

Potential buys continue to increase for intermediate-term players

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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.

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By Kevin Marder

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For a larger chart, please click here .

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

Zillow Group /zigman2/quotes/204413973/composite Z +6.64% is a popular provider of online real-estate data. After netting six cents a share last year, most analysts eye nine cents a share this year and 51 cents in 2017, the latter a 467% increase. Revenue has grown 83% and 46% in the last two quarters, respectively.

The shares are under extreme accumulation as price sits inches away from the high of its eight-month base. This shows up on the chart below. Tuesday saw Z gap up and surge 6% on volume 172% above normal. An aggressive speculator might consider allowing price to pull back or move sideways to form a handle for at least a few days prior to using the Oct. 12 base top of 33.62 as an entrance pivot for a breakout play.

An alternative entrance would be around Tuesday's closing level of 32.05, using the May 4 high of 29.70 as a potential area for a protective stop. This would equate to about 7% risk, or about 3.5% de facto risk if a half-sized starter position is used.

For a larger chart, please click here .

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

Callidus Software is an enterprise-software developer. Earnings growth has been powerful and steady, going from seven cents a share in 2013 to 14 cents in 2014 and 20 cents in 2015. Most seers on Wall Street forecast another 40% growth this year and 39% next year, a catalyst for a potential move higher.

Revenue growth has been 23% and 22% in two most recent quarters, respectively.

Price forms a seven-month base. A minus is that accumulation has only been moderate on the pattern's right side. Tuesday's wide-range action will require an aggressive speculator to allow CALD some time to settle down and perhaps pull back or form a sideways handle. The stock does not offer attractive entrance at present, but its potential warrants monitoring.

For a larger chart, please click here .

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

Better volume, leadership and breadth have accompanied the current 12-day rally in the averages. As a result, the speculative sentiment has improved, with more pattern setups on offer for the intermediate-term momentum player. Though this unidirectional move can logically be expected to invite some profit-taking, the overall good health and stronger investor conviction suggests further upward revaluation over the intermediate term.

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.

US : U.S.: Nasdaq
$ 42.10
+2.62 +6.64%
Volume: 5.83M
May 17, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$9.68 billion
Rev. per Employee

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