Tuesday, October 23, 2018

Watchlist Update: October 23th, 2018

Brief comments and ideas of stocks that belong to my Watchlist. Let see some tech stocks today.

Advance Micro Devices AMD, $25.04

- Its next earning report (Oct 24th) need to be convincent for investors. Nvidia NVDA is again turning strong in the cryptocurrency and gaming markets and Wall Street is reacting to this, giving down AMD price to the important 38.2% level of Fibonacci and with its first MACD bear crossover since April.
- Is increasing its volatility to levels of 90%, making this stock better for daytrading or swing trades. A bit dangerous for invest long.
- I'm neutral this week until Q3 earning.

Dropbox DBX, $23.49

- My favorite file-sharing application since it appeared 10 years ago. What makes it special is its ease of use, intuitive and elegant, that served as a model to its giant competitors: Google Drive, Microsoft OneDrive and Apple iCloud. What keeps her alive in the face of these monsters, is its accumulated prestige over the years and its focus exclusively on file-sharing.
- After your recent IPO this 2018 at $ 29, today you are near your minimums at $ 22.
- Already issued its two first reports and were very successful: growth 27% YoY, Cash Flow> $100M. Its November earnings will be key because its guidance and operating margin has been raised, both good signs for investors.
- Technically, I keep an alert at all time low, waiting for its Q3 earnings, for my first buy in this stock.

Paypal PYPL, $87.23

- Its very important the data of 9 million additional active accounts for the last quarter. This generate nice growth numbers in revenues, income and earnings.
- Its Venmo social payment application gets stronger every day, and its new "smart payment button" is a good innovation for the platform and very useful for its costumers, despite Square SQ and the success of its "Cash App" this year. Venmo, in the future, probably becomes the most profitable payment solution for the company, making PYPL a buy in the long term. I'm holding  my position, open after last earnings.
Today, despite the early sell off of the market, PYPL maintains its strength (+2%) and can break its weekly resistance at $86.25. I see this stock, at the end of the year, towards its recent all time high at $93.70.

VMWare VMW, $144.96

- Now, as all the technology sector XLK, is in a profit-taking period.
- With great numbers in revenues, EPS and cloud license sales, VMW is a buy in the long term. Guidance for 2019 also show growth rates. Its usual price corrections comes when Dell, its parent, post unclear news of merger between both companies. Be careful with this detail, using a tight stop loss.
- Technically, its chart is testing the key moving average 200, completely oversold. I'm looking for a rebound after today markets sell off and a bull crossover in the MACD, for enter long.


AMD, weekly chart: touching important Fibonacci level, now in "value zone". One of the most popular and trade stock in Wall Street.
DBX, daily chart: showing its performance since IPO. I have it on my radar because I basically trust in the quality of its products.
PYPL,10-min chart: near to break week resistance. Its Venmo application is the future of this company, and the reason to hold my position.
VMW, daily chart, testing key support at SMA200. Great cloud service company, trade carefully because of Dell partnership.

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