Stocks Post a Late Reversal Taking More Than 2% From the SPY and QQQ - Chaikin Analytics

Stocks Post a Late Reversal Taking More Than 2% From the SPY and QQQ

Stock of the Day – Green Dot Corporation (GDOT)

Green Dot Corporation (GDOT) has a Very Bullish Chaikin Power Gauge Rating and has recently begun to outperform the SPY. The OB / OS Indicator is moving higher from an oversold position and Chaikin Money Flow is turning bullish. GDOT is above the long-term trend line and has near-term support near the $30 level. The 21-day ATR is currently $2.47.    

The Chaikin Power Gauge Rating for GDOT is Very Bullish due to very attractive financial metrics, very strong price/volume activity, very positive expert activity and strong earnings performance. GDOT’s financial metrics are excellent due to a low long term debt to equity ratio. Price/volume activity for GDOT is very strong, as indicated by price strength versus the market.

Pre-Market Movers

Advancers: UMPQ (17%), PBF (7%), MDLA (7%), CTAS (7%), ESRT (6%)

Decliners: BLUE (8%), ADPT (7%), CHK (4%), Z (4%), PODD (3%)

Mid-Week Market Update

The SPDR S&P 500 ETF (SPY) has a Neutral + Chaikin Power Gauge ETF Rating and is now slightly underperforming the IWV (Russell 3000 ETF). The OB / OS Indicator is moving higher from an oversold position while Chaikin Money Flow has turned bearish. SPY remains below the declining long-term trend line which has acted as resistance to a rally attempt once again. The Power Bar Ratio is bearish. 

Trading in the fund remains choppy as little progress has been made since April 14th. A break of $293 – $300 opens the door to a move to $311. Should that level be broken to the upside, investors have to be open to the idea of the market retesting the highs. On the downside, a break of last week’s low near $280 would set the stage for a move to the $257 – $265 range.  

The Invesco QQQ ETF (QQQ) has a Bullish Power Gauge ETF Rating and is leading the SPY, with the intensity of outperformance increasing of late. The OB / OS Indicator is nearing an overbought level and Chaikin Money Flow is bullish. Resistance is in the area between $230 and $235 while support is in the area between $205 and $215. The QQQ remains the strongest of the main market ETFs as large cap growth has been a key driver to the rally. It is interesting to note that the fund faded from the level that marked a gap lower in February that started the market’s swoon.

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