Overtime

Mailtime

Good morning,

There were no questions this week, but you all made up for it with chart requests.

I hope everyone had a great Memorial Day weekend, and thanks to everybody who participated in this month’s Mailtime.

Let’s see what’s on your fellow investors’ radars!

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Chart Requests

ANET: Arista Networks

Monday’s Playbook highlighted several bull flag setups, and Arista Networks is another one. This datacenter networking company is semiconductor-adjacent enough that it might wait for Nvidia earnings, but a move above the 200-DMA would target another leg of considerable upside for ANET.

APG: APi Group Corporation

This chart request came specifically with the question of whether or not this would be a place to take profits. And there are a few reasons to think it could be a good spot to lighten up.

1. The measured target from this year-long base has been hit

2. The daily MACD is on the verge of a sell signal from a big overbought condition

3. Last Wednesday’s sharp reversal and subsequent confirmation created a candlestick sell/short signal that is in effect as long as the stock remains below $48.08

All that said, yesterday the stock made a new closing high and is a clear relative leader, so don’t confuse “near-term extended” with “major top”.

ASML: ASML Holdings NV

After a disastrous second half of last year, Dutch semiconductor ASML has spent the past six months bottoming and quietly outperforming the S&P 500. The stock needs to clear $785 to complete the major bottom, but yesterday was a good start with a 3.3% gain that cleared a two-week downtrend line.

CAVA: Cava Group