Advanced Selling Strategies: Q3 Stock Guide

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Q3 STOCK GUIDE
Advanced
Selling Strategies
E X C L U S I V E LY F O R M A R K E T S M I T H M E M B E R S
FEATURING Mark Minervini
AUGUST 27, 2019

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Stock Guide // 2019 Q3
At MarketSmith, we’re big believers in rules-based trading. Rules can help

counteract emotions, which can cloud even the clearest of heads when money
is on the line. In this issue of Stock Guide, we’ll dive into some alternative
selling strategies that go beyond a profit target and a stop-loss. Which
technical signals can alert you when a stock has topped and is likely to reverse?
Check out our feature article, Advanced Selling Strategies, to find out.
For our interview this month, we talked to Chris Gessel, Chief Content Officer
of Investor’s Business Daily®. As the captain of IBD’s Markets Team, Chris fol-
lows the indexes from open to close and tracks hundreds of stocks every day
using MarketSmith. He shared some insights from his decades of experience,
as well as a custom MarketSmith screen for finding new trade ideas.
In the latest edition of Good Trade / Bad Trade, we talked with MarketSmith
Senior Product Coach Arnie Gutierrez about two of his recent trades. While
he booked a nice profit jumping into the legal marijuana industry at the right
time, he also got burned by the fast-moving and volatile action of a hot tech
IPO. Arnie will break down his buy and sell points, how he held the stocks and
what he learned from each trade.
As always, if you have any questions or comments about your investing

research or any MarketSmith features, please call one of our product coaches
at (800) 831-2525 or email us at reachus@marketsmith.com. We’re here to
help you make more money in the market.
Best Returns,
The MarketSmith Team
MarketSmith.com // 2019 Q3
S & P 500 INDEX

S & P 500 Index
CLOSE 2941.76
3150
3050
2954.13
2940.91
2950
2916.50
2850
2815.15
2800.18
2750
2722.27 2728.81
2691.99 200 DAY
50 DAY MOVING 2650
MOVING AVERAGE
AVERAGE
2603.54
2550
2450
2350
2346.58
DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

2.5 B
1.4 B
850 M
500 M
29 13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
JUL AUG SEP OCT NOV DEC JAN 2019 FEB MAR APR MAY JUN
NASDAQ COMPOSITE
NASDAQ Composite
CLOSE 8006.24
8700
8500
8300
8176.08
8133.30 8107.38
8100
7933.31
7900
7700
7604.24 7486.51
7500
7419.56
7332.92 7300
200 DAY
7292.21
50 DAY
MOVING
MOVING 7100
AVERAGE
AVERAGE
6900
6922.83
6830.76
6700
6500
6300
6190.16
6100
DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

4B
2.5 B
1.6 B
850 M
29 13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
JUL AUG SEP OCT NOV DEC JAN 2019 FEB MAR APR MAY JUN
4
Table of Contents
Market Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Feature Article: Advanced Selling Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . 6
A Conversation with Chris Gessel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Bigger Better IPOs*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Zoom Video Comm Cl A (ZM). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Zscaler Inc (ZS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Docusign Inc (DOCU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Anaplan Inc (PLAN). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Avalara Inc (AVLR). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Smartsheet Inc Cl A (SMAR). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Pinterest Inc Cl A (PINS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Beyond Meat Inc (BYND). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Good Trade/Bad Trade: Arnie Gutierrez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Institutional-Quality Movers*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
eHealth Inc (EHTH). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
The Trade Desk Inc Cl A (TTD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
CyberArk Software Ltd (CYBR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Globant SA (GLOB). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Kirkland Lake Gold Ltd (KL). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Universal Display Corp (OLED). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Features Highlight: Smart Alerts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Connect with Us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
*All screen results are computer-generated and were run on June 28, 2019.
5
MarketSmith.com // 2019 Q3 l Feature Article
Feature Article:
Advanced Selling Strategies
It’s important to remember that buying stocks should be based on a

combination of fundamental and technical factors, while selling stocks
should be based primarily on technical factors. Two of the most famous
and successful sell rules from William O’Neil’s How to Make Money in
Stocks are:
1. Sell a stock offensively when it’s up 20-25%
2. Sell defensively when it falls 7-8% below your buy point
These selling rules will serve you well for maximizing gains and
minimizing risk.
That’s not to say that alternative selling strategies shouldn’t be utilized.

These strategies take advantage of the fact that you, as an individual
investor, can respond much more rapidly to technical factors than can
a large institution. While it can take institutions weeks or months to
accumulate enough shares for a position, you can buy or sell a full position
in milliseconds without affecting the overall stock price.
Here are a few technical indicators you can use as early signs that you
might want to sell some or all of a position.
Breaking below the 21-day moving average line. In a confirmed uptrend,

most high-quality growth stocks will hold above their 21-day line when
they’re on a strong run. If a stock breaks below its 21-day line on above-
average volume, it’s likely on its way down to the 50-day line. Selling at
least part of your position will lock in some gains.
Breaking below the 50-day moving average line. This is similar to the
21-day line strategy above, but it indicates a stronger sell signal. Many of
the MarketSmith Coaches will use a 50-day line break on heavy volume as
an indicator to sell the remainder of their position.
6
Channel Line Break. This

Channel Line Break
happens when a stock has set
up its general trading range
during a steady run, then
starts behaving atypically
well. This can mean it’s a 50-day
good time to book some
profits, as the stock may have
topped.
TIP: To turn on the 21-day moving average line in MarketSmith,

click the Wrench Icon above the Chart Window and select
“Moving Averages” from the drop-down menu. In the Daily
Moving Averages section, choose “21” for either the green line or
the pink line. This will be your 21-day line on the chart.
Wrench Icon
Moving
Averages
7
MarketSmith.com // 2019 Q3 l Q & A: Chris Gessel
A Conversation with Chris Gessel
Chris Gessel has been covering the market

for Investor’s Business Daily® since 1996.
From 1999 to 2004, he was the primary
author of The Big Picture, IBD’s premier
market analysis column. As IBD’s Chief
Content Officer, he directs market, mutual
fund, company and technology coverage,
and serves on its executive committee.
MarketSmith recently sat down with Chris

to talk about market trends, 2019 IPOs
and technical analysis.
Q: Let’s talk current market. Which sectors are you particularly bullish on as
we head into Q3?
I’m watching semiconductors and software. Software has been the

big leader this year. Look at Veeva (VEEV) — Leaderboard took a 20%
gain on this, but it just keeps going. Other names like Zscaler (ZS)
and CyberArk (CYBR) are setting up nicely after their initial bullish
breakouts. There are just so many software stocks working well.
“If a trade deal gets done, I would expect [the semiconductor

sector] to continue higher.”
Cybersecurity software is where most of the action is happening. CYBR,

ZS and Rapid7 (RPD) are some names to watch in that group. Okta
(OKTA) is not profitable, but it’s having a big move. RPD is one I would
keep an eye on. It’s just now turning profitable, so it doesn’t have the long
track record of profitability favored by CAN SLIM®-style traders, but it’s
on my watchlist.
8
VanEck Vectors Semiconductor ETF (SMH)
Pictured: SMH, an ETF that tracks the semiconductor index. Notice the steep decline
starting in April 2019 and subsequent strong recovery.
Semiconductors are interesting right now. The sector rallied off the
bottom of the December correction with the rest of the market. Aside
from a brief pullback in March, this sector was just heading up and up
until late April. This is about the time that Xilinx (XLNX) topped.
Xilinx, at the time, was the leading chip stock. It had broken out on
earnings the previous quarter and was doing well. Then it missed on Q1
earnings and gapped down 17% the next day. That day, April 25, kicked
off the correction in chips, which you can see by looking at SMH [an
ETF based on the semiconductor index]. It was kind of the canary in the
coalmine for the Nasdaq.
What’s been nice lately is that chips have rallied off the bottom and are
gaining steam. Remember, the biggest thing affecting the market right
now is the trade war with China. If a trade deal gets done, I would expect
chips to continue higher. They were an early leader before and could be a
leader again.
9
Q: What are some cautionary signs that tell you a market uptrend isn’t
“working” like it should?
The first thing to look for is when we’re just starting a confirmed uptrend.
The first line in the sand is the low of the follow-through day. I would put
an alert at the bottom of that day. Our research shows that if you close
under the low of the FTD it doesn’t necessarily mean the rally is going to
fail, but at the very least, it means you’re going to have some trouble for
a while.
The other thing is if individual stock breakouts aren’t working, that’s a

warning sign. You want leaders to be acting well during an uptrend.
The next real test for the Nasdaq and the S&P: Can they take out their
recent highs? The Nasdaq has had some bigger swings, but if you look at
the S&P, it peaked in January 2018 at 2872. We’re only 3% above that
level almost 18 months later. The broad market has really struggled to
make new highs. If we can get a clear move above the old highs, that will
be a really positive sign for the uptrend.
Q: Which IPOs have surprised you most this year, both positively and
negatively?
I love IPOs. I’ve talked about them a lot on the Investing with IBD®
podcast, and really when anyone gives me a moment to speak.
At least once a week, I go back and look at all the companies that have
come public in the last month. I sort them by date to see the most recent.
Since so many IPOs these days don’t have earnings, what I do look for is
really strong sales growth.
Chewy (CHWY) is the latest example. It’s still losing money, but it’s got
$3.5 billion in sales. So this is not your average startup. They’re really
growing sales. In the last quarter, sales growth accelerated from 59% to
67% and they had their first $1 billion quarter.
10
Zoom Video Comm CI A (ZM)

CHWY is a stock I would really be
watching. I would put an alert on
the high of the first day of trading
and hopefully it forms an IPO base.
They can be as short as 5 days,
though I prefer to see them longer
than that.
Some of the best trades, even on a

short-term basis, come from these
IPO bases. CrowdStrike (CRWD)
is another one; it’s growing sales in
the triple digits. Zoom (ZM) is one I
was pleasantly surprised by. Pictured: Zoom Video Communications
(ZM), a software IPO stock that Chris
Now, on the other end of things, has been watching closely since it
it did not surprise me that Uber started trading publicly.
(UBER) struggled right after it
went public. This idea of companies coming in at mega-cap status, $75
billion in this case… I don’t know. Sales growth has also slowed into the
20% range. They don’t have a path to profitability, which really limits the
immediate outlook.
This is why with unprofitable IPOs, unless there’s a clear path to

profitability and you’ve got high conviction, they’re much better short-
term trades where maybe you just hold them above the 10-day line, or
when it hits 20% you take half-profits to avoid giving it all back.
Q: In this issue, we’re covering advanced selling strategies. What are a few of
the technical signals that tell you it might be time to shrink or sell a position?
If you’ve got a stock that’s fundamentally strong, it’s acting really well,
and you’re up 20% but don’t want to take your profits just yet, let it ride
the 10-day moving average line. Wait until you get a close below that line
11
before you take profits. If you’ve got strong conviction, maybe you just
sell 30% or 50%.
Now let’s talk about high-conviction stocks that have a high probability
of pulling back. No one wants to give up on their biggest winners, but it’s
not a bad idea to hedge. For example, what if you’re holding one of these
“super stocks” as the market is going into a correction? It’s logical to
expect a pullback.
What I’ll do is hedge by buying put options on the stock to protect my

profit if the stock starts moving downward. I typically look for puts with
three or more months of time value with a delta of 0.50. If I want to
completely hedge my position, I buy twice as many puts as shares.
Think of it this way: you already have a huge profit on the position. If it
goes up, you’re still making money on the stock, although not as much
because of the put. If it goes sideways, that’s not a big problem, you’re
still up big on the stock.
Now let’s say the stock turns into a pumpkin and dives down. Instead of
losing your profit, you’re making even more money with the put than you
are losing on the stock because the delta is rising as the put gains value. If
the stock gets support at, say, the 50-day line, you can book the put profit
and ride the stock back up.
Q: One last question: I hear you’re an avid deep-sea fisherman. Which requires
more patience, fishing or investing?
Investing. Because if the fish aren’t biting you can always start drinking.
12
Bigger Better IPOs
Look for newer stocks with strong sales
This screen looks for IPO stocks using Chris

Gessel’s sales criteria, since many IPOs don’t
turn a profit early on.
Screen created by Irusha Peiris, MarketSmith Product Coach
COMPANY (SYMBOL) INDUSTRY GROUP RS RATING PAGE
Zoom Video Comm Cl A (ZM) Computer Sftwr-Enterprse 97 14
Zscaler Inc (ZS) Computer Sftwr-Security 96 14
Docusign Inc (DOCU) Computer Sftwr-Enterprse 91 15
Anaplan Inc (PLAN) Computer Sftwr-Enterprse 88 15
Avalara Inc (AVLR) Comp Sftwr-Spec Enterprs 86 16
Smartsheet Inc Cl A (SMAR) Computer Sftwr-Enterprse 83 16
Pinterest Inc Cl A (PINS) Internet-Content 77 17
Beyond Meat Inc (BYND) Food-Meat Products 72 17
Visit Investors.com/MSStockGuide to load the criteria for this and other

Stock Guide screens directly into your MarketSmith screener.
*All screen results are computer-generated and were run on June 28, 2019. This screen can also be found on
marketsmith.com in shared screens.
13
Zoom Video Comm Cl A (ZM)
ZOOM VIDEO COMM CL A(ZM ) NASDAQ 32.1 SHRS / 31.8 FLT / AVG VOL 0 $88.79(OH -17%)
COMPUTER SFTWR-ENTERPRSE zoom.com
6/19 EXPECTS Q2 FY20 NON-GAAP EARNINGS OF $0.01 TO $0.02 PER
SHARE ON REVENUES OF $129 MIL TO $130 MIL.
SHORT INT 2.5 DAYS +7% GROWTH RATE DEBT 0% 159.03 X BK VALUE FUNDS
OPTIONS ON EARNINGS STAB NEW CEO INVENTORY TO. BANKS
UP/DOWN 2.0 EPS RANK 76 TIMELINESS A R&D 10.0% MGMT 1%
EX-DIV PE 1505 (82.2XS&P)ACC/DIST B RET ON EQUITY 5% ALPHA N/A
YIELD 5 YR PE 2997 - 3708 SMR RATING C CASH FLOW $1.1 BETA N/A
EARNINGS (JAN) HI LO GROUP REL STR 99 RS EPS IPO 4/18/19 $36.00 COMPOSITE RATING 97
13$ Shopify SHOP 99 75 QTR 1 QTR 2 PRICE
14 Akerna KERN 99 38 SCALE
15 Paycom PAYC 98 96
16 Coupa Soft COUP 98 76
ProsHldg PRO 98 45 120
17 -0.01 $
18 -0.01 QTR 4
19 0.03
20 0.03 EST +0% ↑ 110
QTR 3
100
90
80
70
60
96 50
40
VOLUME
10 M
R S LINE
VS SP500 4M
1.5 M
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
AUG SEP OCT NOV DEC JAN 19 FEB MAR APR MAY JUN
EPS DUE 8/29 QUARTER ENDED JUL 31,18 QUARTER ENDED OCT 31,18 QUARTER ENDED JAN 31,19 QUARTER ENDED APR 30,19
EARNINGS $ 0.01 VS -0.01 #+200% 0.01 VS -0.01 #+200% 0.01 VS -0.01 #+200% 0.03 VS -0.01 #+400%
SALES MIL. $ 90.2 VS 37.9 +138% 90.2 VS 37.9 +138% 90.2 VS 37.9 +138% 122.0 VS 60.1 +103%
DIVIDEND-PE N/A N/A N/A N/A N/A N/A N/A 3708X --2997X
Zscaler Inc (ZS)

ZSCALER INC(ZS ) NASDAQ 125.7 SHRS / 60.3 FLT / AVG VOL 2.43MIL $76.64(OH -6%)
COMPUTER SFTWR-SECURITY zscaler.com
OPERATES A MASSIVE, GLOBAL CLOUD SECURITY ARCHITECTURE, DELI 5/19 EXPECTS Q4 FY19 ADJUSTED EARNINGS OF $0.01 TO $0.02 PER
VERING THE ENTIRE GATEWAY SECURITY STACK SHARE ON REVENUES OF $81 MIL TO $83 MIL.
SHORT INT 2.9 DAYS -20% GROWTH RATE DEBT 0% 40.09 X BK VALUE FUNDS 21%
OPTIONS ON EARNINGS STAB NEW CEO INVENTORY TO. BANKS 0%
EX-DIV PE 775 (42.6XS&P) ACC/DIST C RET ON EQUITY N/A ALPHA 0.3
YIELD 5 YR PE 4908 - 7294 SMR RATING D CASH FLOW $0.02 BETA 2.02
EARNINGS (JUL) HI LO GROUP REL STR 94 RS EPS IPO 3/16/18 $16.00 COMPOSITE RATING 95
Okta A OKTA 99 12 PRICE
13$ QTR 1 QTR 2
14 Digimrc DMRC 98 19 SCALE
15 -0.11 $ CybArkSftw CYBR 97 99
16 -0.23 Zix ZIXI 97 70
17 -0.26 Rapid7 RPD 97 63 80.38
18 -0.20 48 24 80
↑ QTR 4
19 0.18 EST
20 0.19 EST +6% ↑
72.94
QTR 3
70
65.30
60
60.02
48.24 50
44.00
42.63 42.48
98 40
33.90 34.21
33.00 30
30.72
20
R S LINE
VS SP500
VOLUME
3.5 M
1.2 M
400 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
EARNINGS $ -0.05 VS -0.08 N/A 0.01 VS -0.06 #+117% 0.09 VS -0.05 #+280% 0.05 VS -0.04 #+225%
DIVIDEND-PE N/A N/A N/A N/A N/A N/A N/A 7294X --4908X
14
Docusign Inc (DOCU) MarketSmith.com // 2019 Q3
DOCUSIGN INC(DOCU) NASDAQ 173.8 SHRS / 135.6 FLT / AVG VOL 2.59MIL $49.71(OH -27%)
COMPUTER SFTWR-ENTERPRSE DocuSign.com
PROVIDES E-SIGNATURE SOLUTION THAT ENABLES BUSINESSES TO DIG
6/19 EXPECTS Q2 FY20 REVENUES OF $218 MIL TO $222 MIL.
ITALLY PREPARE, EXECUTE, AND ACT ON AGREEMENTS.
UP/DOWN 1.1 EPS RANK 84 TIMELINESS B R&D 26.5% MGMT 14%
EX-DIV PE 298 (16.2XS&P) ACC/DIST C RET ON EQUITY 13% ALPHA -0.02
YIELD 5 YR PE 463 - 3294 SMR RATING B CASH FLOW $0.58 BETA 1.61
Shopify SHOP 99 75 PRICE
13$ QTR 1 QTR 2
16 -0.79 $ Coupa Soft COUP 98 76
17 -0.74 ProsHldg PRO 98 45 80
18 -0.08 68 35
QTR 4
19 0.11
20 0.19 EST +73% ↓
QTR 3 68.35 70
59.62 60
58.37
56.42
50
51.14 50.92
50.06 50.02
43.35
45.67
40
38.28
36.25
35.06
30
48
R S LINE
VS SP500
20
VOLUME
6M
2M
700 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
EARNINGS $ 0.03 VS -0.01 #+400% 0.01 VS -0.03 #+133% 0.06 VS 0.01 +500% 0.07 VS 0.01 +600%
DIVIDEND-PE N/A N/A N/A 3294X --1914X N/A 2258X --604X N/A 966X --463X
Anaplan Inc (PLAN)

ANAPLAN INC(PLAN) NYSE 129.2 SHRS / 80.1 FLT / AVG VOL 2.51MIL $50.47(OH -4%)
COMPUTER SFTWR-ENTERPRSE anaplan.com
PROVIDES CLOUD-BASED PLANNING PLATFORM THAT HELPS TO CONNECT
5/19 RAISED FY20 REVENUES TO $326 MIL TO $331 MIL.
ORGANIZATIONS AND PEOPLE TO MAKE DECISIONS.
EX-DIV PE ACC/DIST A RET ON EQUITY N/A ALPHA 0.39
YIELD 5 YR PE SMR RATING D CASH FLOW $-0.42 BETA 1.17
13$ QTR 1 QTR 2
17 -0.32 ProsHldg PRO 98 45
18 -0.34 29 20
QTR 4
19 -0.62
20 -0.59 EST ↑ 50
QTR 3
41.76
40
33.59
29.70 30
27.30
98
23.37
20
20.60
10
R S LINE VOLUME
VS SP500 3.5 M
800 K
180 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
EARNINGS $ -0.15 VS -0.06 N/A -0.15 VS -0.08 N/A -0.13 VS -0.13 N/A -0.16 VS -0.19 N/A
DIVIDEND-PE N/A N/A N/A N/A N/A N/A N/A N/A
15
Avalara Inc (AVLR)
AVALARA INC(AVLR) NYSE 73.5 SHRS / 42.6 FLT / AVG VOL 1.20MIL $72.20(OH -4%)
COMP SFTWR-SPEC ENTERPRS avalara.com
DEVELOPS CLOUD-BASED SOFTWARE SOLUTIONS DESIGNED TO IMPROVE
2/19 NAMED AMIT MATHRADAS COO.
ACCURACY AND EFFICIENCY BY AUTOMATING
EX-DIV PE ACC/DIST B RET ON EQUITY N/A ALPHA 0.2
EARNINGS (DEC) HI LO GROUP REL STR 89 RS EPS IPO 6/15/18 $24.00 COMPOSITE RATING 85
Atlassian TEAM 97 99 PRICE
13$ QTR 1 QTR 2
14 Appfolio APPF 97 22 SCALE
15 -1.18 $ ClarivateA CCC 96 5
16 -0.88 Veritone VERI 95 24 75.33
MicroFocus MFGP 94 99 74.90
17 -0.58
18 -0.68 59 28
↑ QTR 4
19 -0.18 EST 70
20 0.04 EST ↓
QTR 3
63.76
60
53.88
53.92
50
44.90
98 40
32.82
32.10 PPO 30
28.89
28.09 PO
R S LINE
VS SP500 20
VOLUME
1.5 M
450 K
138 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
EPS DUE 8/9 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 QUARTER ENDED MAR 31,19
Smartsheet Inc Cl A (SMAR)

SMARTSHEET INC CL A(SMAR) NYSE 87.1 SHRS / 84.5 FLT / AVG VOL 1.94MIL $48.40(OH -4%)
COMPUTER SFTWR-ENTERPRSE smartsheet.com
PROVIDES CLOUD-BASED PLATFORM FOR EXECUTION OF WORK TO OVER 6/19 EXPECTS Q2 FY20 NON-GAAP LOSS OF $0.15 TO $0.16 PER SHARE ON
95,000 CUSTOMERS. REVENUES OF $63.0 MIL TO $64.0 MIL.
EX-DIV PE ACC/DIST A RET ON EQUITY N/A ALPHA 0.26
13$ QTR 1 QTR 2
17 -0.15 ProsHldg PRO 98 45 49.04 50
18 -0.29 33 18
QTR 4
19 -0.37
20 -0.56 EST ↑
QTR 3
40
37.67
33.98 36.76
30
28.25
97
22.16 22.01 20
20.50 20.34
PPO
PO
10
R S LINE VOLUME
VS SP500
1.8 M
500 K
132 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
16
Pinterest Inc Cl A (PINS) MarketSmith.com // 2019 Q3
PINTEREST INC CL A(PINS) NYSE 86.3 SHRS / 85.4 FLT / AVG VOL 0 $27.22(OH -22%)
INTERNET-CONTENT pinterest.com
PROVIDES A VISUAL DISCOVERY PLATFORM THAT HELPS USERS TO DIS
5/19 EXPECTS 2019 REVENUES OF $1.055 BIL TO $1.080 BIL.
COVER IDEAS FOR VARIOUS PROJECTS AND INTERESTS
SHORT INT 1.3 DAYS +23% GROWTH RATE DEBT 0% 16.96 X BK VALUE FUNDS
OPTIONS ON EARNINGS STAB NEW CEO INVENTORY TO. BANKS
UP/DOWN 1.8 EPS RANK 54 TIMELINESS C R&D 33.3% MGMT 1%
EX-DIV PE ACC/DIST B RET ON EQUITY N/A ALPHA N/A
YIELD 5 YR PE SMR RATING D CASH FLOW $-0.43 BETA N/A
13$ Sea Ltd A SE 99 11 QTR 1 QTR 2 PRICE
14 DHI Grp DHX 98 18 SCALE
15 Snap A SNAP 97 46
16 -0.34 $ Match Grou MTCH 96 88
17 -0.24 Opera Ltd OPRA 96 37
18 -0.11 QTR 4
19 -0.21 EST ↓
20 ↓
QTR 3
35
29.81 30
25
BARRONS
23.60
4/15/19
20
82
VOLUME
25 M
8M
R S LINE
VS SP500 2.5 M
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
EARNINGS $ -0.07 VS -0.07 N/A -0.03 VS -0.07 N/A 0.09 VS 0.01 +800% -0.07 VS -0.09 N/A
Beyond Meat Inc (BYND)

BEYOND MEAT INC(BYND) NASDAQ 58.7 SHRS / 32.9 FLT / AVG VOL 0 $160.68(OH -20%)
FOOD-MEAT PRODUCTS beyondmeat.com
MANUFACTURES, MARKETS, AND SELLS PLANT-BASED MEAT PRODUCTS I
6/19 EXPECTS 2019 REVENUES OF ABOUT $210 MIL.
N THE UNITED STATES AND INTERNATIONALLY.
SHORT INT .6 DAYS -19% GROWTH RATE DEBT 40%121.34 X BK VALUE FUNDS
OPTIONS ON EARNINGS STAB NEW CEO 4.6X
INVENTORY TO. BANKS
UP/DOWN 1.8 EPS RANK 14 TIMELINESS C R&D 10.9% MGMT 16%
EX-DIV PE ACC/DIST RET ON EQUITY N/A ALPHA N/A
YIELD 5 YR PE SMR RATING D CASH FLOW $-0.42 BETA N/A
13$ BRF SA BRFS 96 63 QTR 1 QTR 2 PRICE
14 PilgrmsP PPC 94 16 SCALE
15 TysonFds TSN 93 70
16 -0.43 $ SandrFarms SAFM 90 15
Pingtan Mr PME 86 5 240
17 -0.52
18 -0.51 QTR 4
19 -0.27 EST ↑ 220
20 0.07 EST ↑ 201.88
200
QTR 3
180
160
140
120
100
80
60
40
99
20
VOLUME
8M
R S LINE
VS SP500
4M
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
17
MarketSmith.com // 2019 Q3 l Good Trade/Bad Trade
Good Trade/Bad Trade

The Trader: Arnie Gutierrez, MarketSmith Coach
In this edition of Good Trade / Bad Trade,

MarketSmith Coach Arnie Gutierrez
shared a couple of his recent trades—one
winner and one loser—and told us what he
learned from each. Pull up the charts for
CGC and DBX and follow along to see how
you would have handled these trades!
GOOD TRADE: CANOPY GROWTH

CORPORATION (CGC)
The Timeframe: August 2018 – October 2018
Stock Background: Canopy is a story play, plain and simple. I had been
researching the legal marijuana industry for stock ideas. As more and
more states (and entire countries like Canada) legalize marijuana for
medical and recreational use, this market will continue to grow to satisfy
huge new demand.
CGC is positioned as one of the early leaders in this field. Other early
leading stocks in this industry, like TLRY and CRON, were getting a lot
of headlines at the time. CGC, however, looked like they had the best
plan for sustained growth: they acquired major competitors to increase
their market share and brought in senior executives from companies like
Amazon and Walmart.
Technical Picture: Canopy Growth went public in late May 2018. Because
of the fundamental story, I had it on my watchlist from day one. I monitored
it as it built a cup base with a buy point at 36.65. I like to set price alerts for
a dollar below the pivot, which you can do in MarketSmith by hovering over
a base pattern, right-clicking and picking “Set Alert.” Then you just subtract
$1 from the pivot price, turn on email notifications and click “Done.”
18
Following CGC’s August 14 earnings report, the stock gapped up over

30% the next day. Seeing gaps up within the base, especially on really
high volume, showed me the stock had some serious power heading
toward the pivot.
My Buy Point: August 20, 2018 at 37. CGC quickly hit the 36.55 buy
point on huge volume (+357%) and I bought in.
How I Held It: This was an easy one to hold—at first. I watched as it rode
the 10-day moving average line up for a couple weeks. A gain over 25%
in just a few weeks showed me this was a prime candidate for the 8-week
hold rule, so that’s what I did. It got really hard to hold on September 13
during a huge drop. CGC pierced the 21-day line in big volume but closed
above it, though it gave back over 13% in the process. I still wanted to give
it more room based on the story, so I held.
My Sell Point: October 19, 2018 at 46. CGC broke down through the
50-day line on above-average volume, which was my cue to sell. This was
the 4th day in a row with a big loss, so that only reinforced the fact that I
should book my profits on this trade. I still liked the story, but the technical
indicators were too loud to ignore. It went on to close below my original
buy point just 10 days later, so I don’t regret the move.
My 3 Takeaways:
• “Blue skyscrapers” (gains on really high volume) coming out of a base

indicate high potential for a strong breakout.
• As a stock moves up more and more, do more research on it. I felt this
stock was the strongest of the legal marijuana industry, giving me
confidence to keep holding.
• Watch for technical sell signals before you give all your profits back.
When CGC broke the 50-day, I walked away and cashed in my chips.
19
MarketSmith.com // 2019 Q3 l Good Trade/Bad Trade
BAD TRADE: DROPBOX (DBX)
The Timeframe: June 2018 – July 2018
Stock Background: Dropbox was one of the bigger-name tech IPOs from
2018. They provide cloud storage to over 500 million users across 180
countries. I was familiar with the product, since I personally use it, but
I was also aware that the product isn’t exactly unique. Competitors like
Box (BOX), Microsoft (MSFT) OneDrive, Google (GOOGL) Drive and
Amazon (AMZN) Drive can all give DBX a well-financed fight in the cloud
storage arena.
As a rule, I don’t buy IPO stocks on day one; I wait for a base to form
before buying. IPOs can be very volatile, almost speculative, so I prefer
ones that are already showing profitability. In their first earnings report
as a public company, Dropbox had earnings per share of 0.08. That’s not
huge by any means, but it is positive, and a heck of a lot better than some
other tech IPOs (looking at you, UBER and LYFT).
Technical Picture: Dropbox started building a 9-week consolidation

base in Mid-April 2018, less than a month after going public. The base
featured low volume and lots of tight price ranges—things you really
want to see in a base. Because of the nice technical setup and the story, I
had it high on my watchlist.
My Buy Point: June 14, 2018 at 35. When DBX blasted through a 34.93
buy point on sky-high volume (+719%), I bought a position.
How I Held It: Four days later, I was already up over 20%. That’s what
you call a nice jump. Now what I should have done was sell on June 18
when I would have been up almost 25% at the intraday high. That’s the
classic William O’Neil sell rule: take profits at 20-25%. But I got greedy
and decided to hold for a bigger run.
20
Dropbox Inc CI A (DBX)
Buy point: 35
Reason: Breakout
on huge volume
Sell point: 31.50

Reason: Broke 50-day line
My Sell Point: July 5, 2018 at 31.50. Most stocks will retest the pivot
price after a breakout. DBX didn’t just retest it; it broke through the
pivot on June 22 like somebody dropped an anvil. I sold my position on
July 5 when it pierced the 50-day line.
My 3 Takeaways:
• My big mistake was not taking 25% profits when I had them. I turned
a winner into a loser.
• Month-old IPOs are not known for slow and steady gains. Again,
don’t be afraid to take profits and buy back in later, if a good setup
presents itself.
• Especially with IPOs, using technical sell signals (like retesting the pivot
or breaking the 21-/50-day lines) can help prevent a complete roundtrip.
21
Institutional-Quality Movers
Find high-quality stocks with strong price action
This screen looks for stocks with the kind of

fundamentals favored by institutions, plus strong
technical traits like a 90+ Relative Strength Rating
and high average volume.
Screen created by Arnie Gutierrez, MarketSmith Product Coach
COMPANY (SYMBOL) INDUSTRY GROUP RS RATING PAGE
eHealth Inc (EHTH) Insurance-Brokers 99 23
The Trade Desk Inc Cl A (TTD) Comml Svcs-Advertising 99 23
CyberArk Software Ltd (CYBR) Computer Sftwr-Security 98 24
Globant SA (GLOB) Computer-Tech Services 98 24
Kirkland Lake Gold Ltd (KL) Mining-Gold/Silver/Gems 98 25
Universal Display Corp (OLED) Elec-Misc Products 98 25
Visit Investors.com/MSStockGuide to load the criteria for this and other

Stock Guide screens directly into your MarketSmith screener.
*All screen results are computer-generated and were run on June 28, 2019. This screen can also be found on
marketsmith.com in shared screens.
22
eHealth Inc (EHTH) MarketSmith.com // 2019 Q3
EHEALTH INC(EHTH) NASDAQ 22.6 SHRS / 21.5 FLT / AVG VOL 533250 $86.10(OH 0%)
INSURANCE-BROKERS ehealth.com
HEALTH INSURANCE BROKERS FOR INDIVIDUALS, FAMILIES/SMALL BUS 4/19 RAISED 2019 ADJUSTED EARNINGS GUIDANCE TO $1.54 TO $1.73 PER
INESSES VIA 6 WEBSITES IN 50 STATES, D.C./CHINA. DILUTED SHARE ON REVENUES TO $315 MIL TO $335 MIL.
SHORT INT 3 DAYS +1% GROWTH RATE DEBT 2% 6.43 X BK VALUE FUNDS 43%
OPTIONS ON NY/PH EARNINGS STAB NEW CEO INVENTORY TO. BANKS 0%
EX-DIV PE 62 (3.6XS&P) ACC/DIST A RET ON EQUITY 7% ALPHA 0.53
YIELD 5 YR PE 7 - 218 SMR RATING B CASH FLOW $1.29 BETA 1.13
EARNINGS (DEC) HI LO GROUP REL STR 98 RS EPS (W) COMPOSITE RATING 98
14 ErieIndmty ERIE 98 86 PRICE
13$ 0.37 $ 48 QTR 1 QTR 2
14 -0.01 63 18 Fanhua FANH 93 84 SCALE
15 0.43 25 8 Aon AON 92 82
16 0.17 15 6 WillisTowe WLTW 90 93
17 1.69 28 10 GallaghrAr AJG 88 77 90
18 1.00 40 13
↑ QTR 4
19 1.67 EST +67%
20 2.07 EST +24% ↓
80
QTR 3
73.71
67.44 70
60
53.27 50
49.19
40.71
99 40
32.96
30
PPO
25.98
22.29 20
PO
10
VOLUME
R S LINE
VS SP500 650 K
174 K
52 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
EPS DUE*7/26 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 QUARTER ENDED MAR 31,19
EARNINGS $ -0.40 VS 0.01 N/A -0.22 VS -0.04 N/A 1.61 VS 1.57 +3% 0.33 VS -0.07 #+571%
SALES MIL. $ 32.7 VS 34.6 -6% 40.8 VS 31.5 +30% 134.9 VS 83.1 +62% 68.8 VS 43.1 +60%
DIVIDEND-PE N/A 16X -- 8X N/A 31X -- 15X N/A 46X -- 26X N/A 75X -- 41X
The Trade Desk Inc Cl A (TTD)

*THE TRADE DESK INC CL A(TTD) NASDAQ 38.5 SHRS / 37.4 FLT / AVG VOL 1.71MIL $227.78(OH -11%)
COMML SVCS-ADVERTISING thetradedesk.com
SELF-SERVICE PLATFORM FOR AD BUYERS TO PURCHASE AND MANAGE D
5/19 RAISED 2019 ADJUSTED EBITDA GUIDANCE TO ABOUT $188.5 MIL.
ATA-DRIVEN DIGITAL ADVERTISING CAMPAIGNS
SHORT INT 2.4 DAYS +9% GROWTH RATE +69% DEBT 0% 25.70 X BK VALUE FUNDS 48%
OPTIONS ON EARNINGS STAB 9 NEW CEO INVENTORY TO. BANKS 1%
EX-DIV PE 82 (4.5XS&P) ACC/DIST B RET ON EQUITY 39% ALPHA 0.37
YIELD 5 YR PE 29 - 88 SMR RATING A CASH FLOW $3.09 BETA 2.22
Telaria TLRA 98 53 PRICE
13$ QTR 1 QTR 2
14 0.01 $ Fluent FLNT 98 45 SCALE
15 0.56 SocialReal SRAX 97 15
16 0.87 33 22 Cbdmd YCBD 97 7
Marchx MCHX 96 76 260
17 1.60 67 26
18 2.70 161 40
↓ QTR 4
19 2.89 EST +7% 240
20 3.63 EST +26% ↑ 232.70
QTR 3
214.70 220
200
180
178.30
161.50 173.60
160
149.00
140
98
120
97.87 100
105.03 105.34 102.35
80
83.66
60
R S LINE VOLUME
VS SP500 3.5 M
1.2 M
400 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
EARNINGS $ 0.60 VS 0.52 +15% 0.65 VS 0.35 +86% 1.09 VS 0.54 +102% 0.49 VS 0.34 +44%
23
CyberArk Software Ltd (CYBR)
*CYBERARK SOFTWARE LTD(CYBR) NASDAQ 35.0 SHRS / 21.7 FLT / AVG VOL 954040 $127.84(OH -7%)
COMPUTER SFTWR-SECURITY cyberark.com
ISRAELI PROVIDER OF NETWORK SECURITY SOFTWARE FOCUSED ON PRO 5/19 EXPECTS 2019 NON-GAAP EARNINGS OF $2.10 TO $2.16 PER DILUTED
TECTING PRIVILEGED ACCOUNTS SHARE ON REVENUES OF $415.0 MIL TO $419.0 MIL.
SHORT INT 1.2 DAYS -12% GROWTH RATE +41% DEBT 0% 12.63 X BK VALUE FUNDS 33%
EX-DIV PE 55 (3.1XS&P) ACC/DIST C RET ON EQUITY 19% ALPHA 0.26
Okta A OKTA 99 12 PRICE
13$ 0.28 $ QTR 1 QTR 2
14 0.49 47 22 Zscaler ZS 98 76 SCALE
15 1.00 76 33 Digimrc DMRC 98 19
16 1.26 59 31 Zix ZIXI 97 70
97 63 138.73 140
17 1.16 55 39 Rapid7 RPD
135.58
18 2.06 84 40
↑ QTR 4
19 2.16 EST +5%
20 2.54 EST +18% ↑ 130
QTR 3
120
118.50
110
100
90
84.21
81.24
79.16 97 80
69.97
70
65.85 64.66 65.90

60
59.02
50
R S LINE VOLUME
VS SP500
1.4 M
450 K
148 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
Globant SA (GLOB)
*GLOBANT SA(GLOB) NYSE 35.9 SHRS / 33.4 FLT / AVG VOL 420160 $101.05(OH -4%)
COMPUTER-TECH SERVICES globant.com
LUXEMBOURG PROVIDER OF IT SERVICES WITH 40 CENTERS IN ARGENT 5/19 EXPECTS 2019 ADJUSTED EARNINGS OF $2.13 TO $2.21 PER DILUTED
INA, URUGUAY, COLOMBIA, BRAZIL, MEXICO, PERU SHARE ON REVENUES OF $638 MIL TO $646 MIL.
SHORT INT 5 DAYS -28% GROWTH RATE +27% DEBT 0% 13.73 X BK VALUE FUNDS 48%
UP/DOWN 2.4 EPS RANK 96 TIMELINESS A R&D N/A MGMT 6%
EX-DIV PE 53 (3.0XS&P) ACC/DIST B RET ON EQUITY 21% ALPHA 0.2
Endava A DAVA 97 97 PRICE
13$ 0.44∆ $ QTR 1 QTR 2
14 0.77∆ 15 10 CSP CSPI 96 20 SCALE
15 0.98∆ 38 13 Sapiens SPNS 95 86
16 1.09 47 22 Perficient PRFT 95 80
17 1.28 47 30 CDW CDW 92 96
18 1.74 66 42
↓ QTR 4
19 2.20 EST +26% 100
20 2.69 EST +22% ↓
QTR 3
90
80
74.00
75.00
70
66.41
67.60
98
59.97 59.92
60
53.62 53.24 50
50.91
48.95
46.30
R S LINE
40
VS SP500 VOLUME
1M
300 K
96 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
24
Kirkland Lake Gold Ltd (KL) MarketSmith.com // 2019 Q3
*KIRKLAND LAKE GOLD LTD(KL ) NYSE 209.7 SHRS / 201.3 FLT / AVG VOL 1.61MIL $42.92(OH -2%)
MINING-GOLD/SILVER/GEMS klgold.com
CANADIAN FIRM ENGAGED IN THE PROVISION OF MINING AND MINERAL 3/19 NAMED JEFFREY PARR INTERIM CHRMN, EFFECTIVE MAY 7, 2019,
EXPLORATION IN CANADA AND AUSTRALIA. REPLACING ERIC SPROTT WHO WILL RETIRE.
SHORT INT 3.6 DAYS -6% GROWTH RATE +181% DEBT 2% 7.77 X BK VALUE FUNDS 39%
OPTIONS ON EARNINGS STAB 57 NEW CEO INVENTORY TO. 18.2X BANKS 1%
EX-DIV 6/27 PE 26 (1.5XS&P) ACC/DIST B RET ON EQUITY 24% ALPHA 0.32
YIELD 0.4% 5 YR PE 16 - 32 SMR RATING A CASH FLOW $2 BETA -0.26
EARNINGS (DEC) HI LO GROUP REL STR 84 RS EPS COMPOSITE RATING 99
Tanzanian TRX 99 25 PRICE
13$ QTR 1 QTR 2
14 GoldFields GFI 98 77 SCALE
15 0.08 $ AnglogoldA AU 98 76
SibanyeGol SBGL 98 5 50
16 0.32
17 0.75 15 10 NovaGold NG 96 40
18 1.34 26 13
↓ QTR 4
19 2.23 EST +66%
20 2.25 EST +1% ↑
QTR 3
40
36.74
30
30.57
29.15
23.86
22.34
98
20
18.12
17.26
R S LINE 10
VS SP500 VOLUME
5.5 M
1.6 M
500 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
DIVIDEND-PE $0.02 24X -- 19X $0.02 25X -- 17X $0.03 23X -- 16X $0.03 30X -- 21X
Universal Display Corp (OLED)

UNIVERSAL DISPLAY CORP(OLED) NASDAQ 47.2 SHRS / 42.0 FLT / AVG VOL 773602 $188.06(OH -2%)
ELEC-MISC PRODUCTS udcoled.com
DESIGNS ORGANIC LIGHT EMITTING DIODE DEVICES FOR FLAT PANEL
5/19 EXPECTS 2019 REVENUES OF $405 MIL TO $425 MIL.
DISPLAYS USED IN THE CONSUMER ELECTRONICS MARKET.
SHORT INT 4.8 DAYS +5% GROWTH RATE +20% DEBT 0% 12.86 X BK VALUE FUNDS 51%
OPTIONS ON AM/MS EARNINGS STAB 25 NEW CEO INVENTORY TO. 4.7X BANKS 1%
EX-DIV 6/13 PE 106 (5.9XS&P) ACC/DIST B RET ON EQUITY 9% ALPHA 0.31
YIELD 0.2% 5 YR PE 26 - 131 SMR RATING B CASH FLOW $0.3 BETA 2.12
EARNINGS (DEC) HI LO GROUP REL STR 81 RS EPS (C) (W) COMPOSITE RATING 98
24 RschFront REFR 99 28 PRICE
13$ 0.70 $ 39 QTR 1 QTR 2
14 0.90 39 22 Virnetx VHC 97 31 SCALE
15 0.94 57 25 Astronova ALOT 94 88
16 1.02∆ 74 40 Trimble TRMB 90 61
ZebraTech ZBRA 89 95
17 2.47 192 55 200
18 1.24 209 78
↑ QTR 4 190.00
19 2.43 EST +96%
20 3.75 EST +54% ↑
QTR 3 180
160
143.55 140
130.60 130.01
125.55
120
98
99.48
100
DIV
INC 80
83.03
78.78
60
R S LINE VOLUME
VS SP500
2.8 M
1M
350 K
13 27 10 24 7 21 5 19 2 16 30 14 28 11 25 8 22 8 22 5 19 3 17 31 14 28
EARNINGS $ 0.23 VS 0.99 -77% 0.48 VS 0.28 +71% 0.40 VS 0.95 -58% 0.66 VS 0.13 +408%
SALES MIL. $ 56.2 VS 102.5 -45% 77.6 VS 61.7 +26% 70.1 VS 115.9 -39% 87.8 VS 43.6 +101%
DIVIDEND-PE $0.06 50X -- 34X $0.06 82X -- 35X $0.06 79X -- 46X $0.10 131X -- 44X
25
Features Highlight: Smart Alerts
MarketSmith Smart Alerts are designed to go beyond a set price, and

instead focus on technical signals that may serve as alternative buy
or sell points. Click on the Alerts icon at the top right of the chart and
select “Manage Alerts,” then click on the “Smart Alerts” tab to receive a
notification when a stock meets any of these five criteria.
Pullback to 10-week line helps investors identify a point where they

might want to add to their positions when the market is in a solid
uptrend. The price must still be higher than the pivot of the most recent
base, meaning the breakout is still viable.
50-Day Break on Volume is a potential warning that a breakout might

be failing. The alert will trigger if a stock falls 5% below the 50-day in
26
volume 50% or more above average. The 50-day Break alert only triggers
for stocks that have broken out of a base and had been in an uptrend
prior to the break.
50-day SMA (Simple Moving Average) triggers when the stock is

moving down to or up to the 50-day line. This area is a critical support
area for institutions. If the stock is moving down, look to see if there’s
institutional support to push the stock price up. Consequently, as a stock
moves up to the 50-day SMA, this can affirm a stock is forming a base
with strength to complete the pattern, a sign of institutional support and
a possible breakout.
10-day SMA triggers when a stock is above the 10-day moving average
and pulling back. Breaking out and staying above the 10-day SMA, while
continuing to bounce higher, can signal strong momentum for a stock run.
21-day SMA triggers when a stock is above the 21-day moving average
and pulling back. If a stock falls below the 21-day line, it might be a sign
to exit the position or wait for institutional support.
Custom Trendline Alerts

To know when a channel line is broken (see this issue’s feature article for
more on that), you can draw your own trendline and set a custom alert.
To draw a trendline, right-click on the chart and select “Temporary Line
Pen.” (Note: you can also draw a trendline by holding down the “Ctrl”
key while clicking and dragging your mouse). Once you have drawn
your trendline, hover over it with your cursor, right-click, and select
“Set Alert.” The trigger for trendline alerts is determined by the location
of the line, and it is recalculated and extended each day. The alert is
triggered when a stock’s current price crosses the trendline.
27
Resources
MarketSmith Coaching
Questions about MarketSmith? Call us today and talk to a Product Coach!
Whether you have a question about earnings season or you just want
some perspective on recent market action, our Product Coaches are here
for you. Best of all, this service is free with your MarketSmith subscription!
Here are a few investing-related topics you can call us about today:
• Building a better research routine
• Finding stocks that fit your investing style
• Identifying buy and sell points
• Gauging supply and demand via volume
Call a coach at 800-831-2525, Monday-Friday, 9am-7pm ET.

__________________________________________________________________________________
MarketSmith University
Looking for a faster way to get started? We’ve taken everything a

MarketSmith member needs to know and gathered it into one place!
Check out MarketSmith University from the members home page,
MarketSmith.investors.com. It’s located in the center of the page under
the “Getting Started” section.
11 Essential Lessons: When you click on the link, you’ll be taken to the
core curriculum. These 11 webinars were personally selected by our
coaches to give you a roadmap to better investing. You’ll learn all about
big-picture concepts like technical and fundamental stock data, as well
as practical how-to guides on research routines and watch lists.
Continue Your Education: Once you’ve absorbed these 11 lessons and

you’re on your way to mastering MarketSmith, you’ll want to check out
the full range of educational webinars available. If you click the drop-
down menu next to the 11 core lessons, you’ll see additional topics that
you can explore any time.
28
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Advanced
Selling Strategies
STOCK GUIDE // 2019 Q3
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Advanced Selling Strategies: Q3 Stock Guide

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20

FEATURING Mark Minervini

AUGUST 27, 2019

We’re excited to announce that U.S. Investing Champion and

Mark will demonstrate how he uses MarketSmith to find new

Don’t miss this exciting opportunity to learn MarketSmith

DON’T MISS MARK’S ONCE-

At MarketSmith, we’re big believers in rules-based trading. Rules can help

As always, if you have any questions or comments about your investing

S & P 500 INDEX

DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

Feature Article: Advanced Selling Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . 6

A Conversation with Chris Gessel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Bigger Better IPOs*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Zoom Video Comm Cl A (ZM). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Zscaler Inc (ZS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Docusign Inc (DOCU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Anaplan Inc (PLAN). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Avalara Inc (AVLR). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Smartsheet Inc Cl A (SMAR). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Pinterest Inc Cl A (PINS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Beyond Meat Inc (BYND). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Good Trade/Bad Trade: Arnie Gutierrez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

eHealth Inc (EHTH). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

The Trade Desk Inc Cl A (TTD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

CyberArk Software Ltd (CYBR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Kirkland Lake Gold Ltd (KL). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Universal Display Corp (OLED). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Features Highlight: Smart Alerts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

It’s important to remember that buying stocks should be based on a

1. Sell a stock offensively when it’s up 20-25%

2. Sell defensively when it falls 7-8% below your buy point

That’s not to say that alternative selling strategies shouldn’t be utilized.

Breaking below the 21-day moving average line. In a confirmed uptrend,

Channel Line Break. This

TIP: To turn on the 21-day moving average line in MarketSmith,

A Conversation with Chris Gessel

Chris Gessel has been covering the market

MarketSmith recently sat down with Chris

I’m watching semiconductors and software. Software has been the

“If a trade deal gets done, I would expect [the semiconductor

Cybersecurity software is where most of the action is happening. CYBR,

VanEck Vectors Semiconductor ETF (SMH)

The other thing is if individual stock breakouts aren’t working, that’s a

Zoom Video Comm CI A (ZM)

Some of the best trades, even on a

This is why with unprofitable IPOs, unless there’s a clear path to

What I’ll do is hedge by buying put options on the stock to protect my

Look for newer stocks with strong sales

This screen looks for IPO stocks using Chris

Screen created by Irusha Peiris, MarketSmith Product Coach

COMPANY (SYMBOL) INDUSTRY GROUP RS RATING PAGE

Zoom Video Comm Cl A (ZM) Computer Sftwr-Enterprse 97 14

Zscaler Inc (ZS) Computer Sftwr-Security 96 14

Docusign Inc (DOCU) Computer Sftwr-Enterprse 91 15

Anaplan Inc (PLAN) Computer Sftwr-Enterprse 88 15

Avalara Inc (AVLR) Comp Sftwr-Spec Enterprs 86 16

Smartsheet Inc Cl A (SMAR) Computer Sftwr-Enterprse 83 16

Pinterest Inc Cl A (PINS) Internet-Content 77 17

Beyond Meat Inc (BYND) Food-Meat Products 72 17

Visit Investors.com/MSStockGuide to load the criteria for this and other

Zscaler Inc (ZS)