Exciting News for Idea Generator Subscribers!
We’re excited to share that we’re reducing the price of our subscription to $9/month or $75/year! This marks a significant discount from the current cost of $24/month or $200/year. As a free subscriber, we hope you’ll consider upgrading.
Under the revamped paid subscription plan, we’ll be publishing one actionable stock idea per week, and we’re going to add top-down/thematic context (see below). This way, we’ll be able to provide higher conviction ideas with more color and with less turnover. We believe this will improve the quality of the service while making it accessible to more people.
Free subscribers will receive limited content, so we encourage you to try out a paid subscription, and you can cancel any time. We’ll be reserving new ideas, like below, primarily to paid subscribers. To upgrade, please click the button below. Reach out to us at info@fairleadstrategies.com with any questions.
Now, onto our content for the week…
In our search for stocks with positive technical catalysts, we found a common theme: long-term base breakouts. Many stocks have cleared important resistance on their weekly bar charts, based on the cloud model, reflecting a bullish shift that could be lasting. The cloud model (a/k/a the “Ichimoku Cloud”) is known for providing a complete visual of the prevailing trend and key levels.
A great example of this setup is our newest long idea, Domino’s Pizza (DPZ):
DPZ appears to have a long-term turnaround underway following a base breakout this summer above the weekly cloud model (the shaded area on the chart). In October, DPZ made a higher low above the cloud and has seen a bullish intermediate-term shift per the weekly MACD, supporting an extension higher.
DPZ was the top performer in the S&P 500 on Monday, gaining 4.5% in reaction to an analyst upgrade. The upmove preserved initial support near $365, defined in part by the 50-day (~10-week) moving average, which DPZ cleared as minor resistance earlier this month in an additional positive catalyst.
A measured move projects an intermediate-term upside target of ~$454 for DPZ. To manage risk, a stop-loss can be place below support from the 50-day moving average, which is currently near $364.
Chart & Levels
Domino’s Pizza (DPZ, $388.27):
Target: $454
Stop-Loss: $364
Updates on Existing Ideas
Axon Enterprise, Inc. (AXON): We removed AXON from our long ideas, added on 10/11, because it now has a counter-trend signal near resistance.
Telecom Argentina SA (TEO): After an explosive continuation higher, we are tightening our stop-loss to $6.90 from $6.10.