Ross Haber's Newsletter

May 30th, 2018

MARKET ANALYSIS AND SUMMARY
Investors managed to find plenty to worry about yesterday as they returned from the long, Memorial Day weekend.
Hence, the major indexes sold off on heavier volume across the board, adding distribution to the NASDAQ and S&P 500.
No doubt, yesterday’s action was far from ideal, however, it could have been much worse.

More importantly, a broad base of fundamentally sound, leading growth stocks continues to build constructive bases
and break out, providing the backbone necessary to support a healthy, sustainable uptrend.

So, continue to buy leading stocks as entry areas present themselves. Remember though, “buying right” is critical, as are
tight, yet logical sell stops. Exposure should only be increased if progress is being made, the general market continues
to improve and its leadership continues to make worthwhile progress.

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THE INDICES
The NASDAQ still appears to be working on a constructive “handle area,” as it sets up for a potential breakout to new all -
time highs.

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The Russell 2000 is still consolidating constructively above its prior high and just slightly below its recent, all -time high.

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The S&P 500 broke below recent support on heavy volume and added another distribution day yesterday, but managed
to find support at its 50-DMA, which is a positive.

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The DOW broke below recent support on heavy volume and closed a hair below its 50-DMA, but continues to maintain its
pattern of higher lows and is still trading well above its 200-DMA, which is a positive.

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 HOW TO TRADE USING THE NEWSLETTER
In order to effectively trade positions using the newsletter, it is important to have a basic understanding of key terms
with trading rules & guidelines.

Key Terms: Below are the key terms that are used throughout the newsletter.
1. Big volume move: A volume increase of at least 25-30% as a stock breaks out through a specific entry area.
 Exceptions are made in the cases of pocket pivots (including 5-day pocket pivots) and significant increases in volume
that can be clearly seen on a relative basis.
2. Guide for entry: A specific level or price from which a stock can be purchased on constructive weakness.
3. Constructive weakness: This refers to price action that does one of the following:
 Pulls back on light &/or declining volume.
 May be considered more of a drift lower than a “pullback.”
 Moves in a tight, sideways pattern on light &/or declining volume.
 Movement below a significant area of support that ultimately reverses and closes back near a stock’s high for the day.
 This is referred to as an undercut and rally which forms a bullish reversal.

Trading Guidelines
1. Validating Trades: When a stock breaks above an entry point (i.e. it triggers a breakout), it is absolutely critical to check
the volume on the move in real-time to ensure it is considered a big volume move as defined in key terms.
2. Entering Trades: When initiating a buy on a stock, never purchase the stock higher than 2% above its entry area as
defined.
 Exception 1: If the stock is exhibiting overwhelming strength and power through both price and volume in the previous
days/weeks prior to its breakout, it is acceptable to enter the stock as high as 5% past its entry point.
 Exception 2: When a stock gaps higher at the open, observe price and volume for the first 30 minutes to determine a
possible entry. If a constructive pullback occurs, a position can be initiated. The stock should not be chased higher and
should be not be purchased more than 2% past its entry point. Please note that entering positions on gap-ups should
be executed only by advanced traders. If you are unsure, it may be best to skip the trade.

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3. Exiting Trades:
 Sell Stop Rules: All positions MUST be sold immediately at 8% below entry price. All other sell stops on position trades
are based on closing daily prices. This allows the stock to potentially recover intraday back above the specified sell
stop and not considered to be triggered.
 Sell Stops at Moving Averages: When a major moving average is used as a sell stop, the actual stop price should be at
most 2% below the actual value of the moving average and is triggered, as mentioned above, based on the closing daily
price of the position trade.
4. Managing Earnings Reports (EPS):
 Dates: Earnings Report Dates will be provided on a best-case effort. It is still absolutely important to always check
regularly for when the earnings release dates are scheduled for. It is important to continue to check these dates as
they continually shift throughout earnings season.
 Hold/Sell Rules:
 If your current position trade does not have sufficient profit to support a percentage move to the downside identified
by ANY of the criteria below, the position should be exited prior to earnings:
 Minimum profit required is 5%.
 Percentage move on previous binary events (i.e. Earnings Reports, Guidance Releases, etc.)
 Percentage of the implied move a few days prior to earnings.

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THE STOCKS
Buy AMZN using $1,600.00 as a guide for entry, with a sell stop at its 23-EMA &/or on a big volume move through
$1,615.60, with a sell stop at its 23-EMA. (Optimal Entry $1,615.60)

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Buy MU using $61.72 as a guide for entry, with a sell stop at $60.00 &/or on a big volume move through $63.42, with a
sell stop at $60.00. (Optimal Entry: $63.42)

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Buy NVDA on a big volume move through $251.00, with a sell stop at its 23-EMA. (Optimal Entry $251.00)

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Buy FB on a big volume move through $186.00, with a sell stop at $182.00 &/or on a big volume move through $188.32,
with a sell stop at $182.00. (Optimal Entry: $186.00) (Optimal Entry $188.32)

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Buy SQ using $56.72 as a guide for entry, with a sell stop at its 23-EMA &/or on a big volume move through $58.07, with
a sell stop at its 23-EMA. (Optimal Entry $58.07)

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Buy Z on a big volume move through $56.53, with a sell stop at its 50-DMA. (Optimal Entry: $56.53)

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Buy PYPL on a big volume move through $82.32, with a sell stop at $79.00. (Optimal Entry: $82.32)

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Buy COUP using $50.69 as a guide for entry, with a sell stop at $49.00 &/or on a big volume move through $52.48, with a
sell stop at $49.00. (Optimal Entry: $52.48)

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Buy TWLO on a big volume move through $55.20, with a sell stop at $52.50. (Optimal Entry: $55.20)

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Buy ETSY using $30.00 as a guide for entry, with a sell stop at its 50-DMA &/or on a big volume move through $31.00,
with a sell stop at its 50-DMA. (Optimal Entry: $31.00)

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FOLLOW-UP COMMENTARY
The following list of stocks have triggered valid entries and are in the middle of a move, where other than sell stops,
there is nothing else actionable to discuss.
ADBE – Long from $229.15, profits taken below its 23-EMA on 4/24/18. Long from 50-DMA ($175.91) profits taken on
1/2 below its 21-DMA on 2/5/18. Trailing sell stop 50-DMA.
AKAM – Long from $76.30, sell stop 21-DMA.
BABA – Long from $200.00 entry area, sell stop $192.50.
BZUN – Long from $52.30 entry area, trailing stop for 1/2 at $54.00 and 1/2 at its 21-DMA.
CARB – Long from $32.35 entry area, trailing stop for 1/2 at its 21-DMA and 1/2 at$33.40.
DATA – Long from $95.78 entry area, trailing stop $96.00.
DOCU – Long from $46.70 entry area, sell stop $43.50.
HUYA – Long from $23.40 entry area, sell stop $21.00.
MIME – Long from $38.30 &/or $39.33 entry areas, profits taken on 1/2 below its 10-DMA on 5/22/18. Trailing stop 23-
EMA.
NFLX – Long from $307.84, $308.68, $321.00 &/or $338.32 entry areas, trailing/sell stops 50-DMA.
PANW – Long from $190.00, $197.20 &/or $201.00, sell stop for 1/2 at its 23-EMA and 1/2 at its 50-DMA.
RPD – Long from $26.63 entry area, profits taken on 1/2 below its 4-EMA on 5/11/14. Trailing stop 23-EMA.
SPLK – Long from $108.00 entry area, profits taken on 1/2 below $112.50 on 5/14/18 and 1/2 below its 23 -EMA on
5/25/18.
ZUO – Long from $21.85 entry area, sell stop $20.25.
BA – Long from the $355.00 entry area, sell stop 21-DMA.
BOOT – Long from $20.31 entry area, trailing stop for 1/2 at its 10-DMA and 1/2 at its 23-EMA.
CLR – Long from 59.47 entry area, profits taken on 1/2 below its 10-DMA on 5/3/18 and 1/2 below its 23-EMA on
5/25/18.
DK – Long from $38.15 &/or $39.43 entry areas, trailing stop 1/2 at its 23-EMA and 1/2 at its 50-DMA.
GOOS – Long from $36.66, $37.33, $37.80 &/or $38.25 entry areas, trailing stop for 1/2 at its 21-DMA and 1/2 at its 50-
DMA.
LAYN – Long from $15.36 entry area, sell stop 65-EMA.

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LULU – Long from $100.00 entry area, trailing stop for 1/2 at its 4-EMA and 1/2 at its 23-EMA.
LVMUY – Long from $70.25 entry area, sell stops triggered below its 4-EMA and 23-EMA on 5/25/18. Long from $63.20
entry area, profits taken on 1/2 below its 4-EMA on 4/19/18 and 1/2 below its 23-EMA on 5/25/18.
OPY – Long from $28.40 entry area, sell stop triggered below its 10-DMA on 5/25/18.
RACE – Long from $123.05 &/or $125.44 entry areas, profits taken on 1/2 below its 4-EMA on 5/15/18. Profits taken and
sell stops triggered below its 23-EMA on 5/25/18.
TAL – Long from $41.75 entry area, sell stop $40.50.
VLO – Long from $96.00 entry area, trailing stop for 1/2 at its 23-EMA and 1/2 at its 50-DMA.
WHD – Long from $27.96 entry area, profits taken on 1/2 below its 4-EMA and 1/2 below its 10-DMA on 5/25/18.
GWPH – Long from $143.22, sell stop for 1/2 at its 10-DMA and 1/2 at its 23-EMA.
HQY – Long from the $67.00 &/or $68.25 entry areas, trailing stop for 1/2 at its 10-DMA and 1/2 at its 23-EMA.
LGND – Long from $184.79, sell stop $179.00.
SRPT – Long from $80.00 entry area, profits taken on 1/2 below its 10-DMA on 5/21/18. Trailing stop 23-EMA.
TCMD – Long from $33.00 &/or $35.08 entry areas, trailing stop for 1/2 at $45.00 and 1/2 at its 21-DMA.

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STOCKS ON DECK
The following list of stocks may become actionable at any time. If and when these stocks actually trigger a legitimate
entry area, they will be included in the chart section above.
AAPL – Pivot point $189.65, sell stop $185.70. ($189.65)
APPN – Pivot point $31.90, sell stop $30.00. ($31.90)
CDAY – Pivot point $34.90, sell stop $33.00. ($34.90)
CMTL – Pivot point $31.40, sell stop 50-DMA. Long from $30.85 &/or $31.40 entry areas, sell stop 50-DMA. ($31.40)
CRM – Pivot point $129.40, sell stop $124.50. ($129.40)
DBX – Pivot point $31.50, sell stop $29.70. ($31.50)
GRUB – Pivot point $105.68, sell stop $100.00. Long from $105.68, sell stop $100.00. ($105.68)
HUBS – Pivot point $120.00, sell stop $115.50. ($120.00)
MOMO – Pivot point $45.60, sell strop $44.00. ($45.60)
NOW – Pivot point $176.56, sell stop 50-DMA. Long from $175.54 &/or $176.56, sell stop 50-DMA. ($176.56)
RHT – Pivot point $167.36, sell stop 50-DMA. ($167.36)
SGH – Pivot point $48.11, sell stop 50-DMA. ($48.11)
SHOP – Pivot point $148.29, sell stop 21-DMA. ($148.29)
TWTR – Guide for entry $33.78, sell stop 21-DMA. Long from $33.12 &/or $33.78 entry areas, sell stop 21-DMA.
VDSI – Pivot point $20.88, sell stop $19.80. ($20.88)
YY – Pivot point $110.46, sell stop 200-DMA. Long from $106.00 entry area, sell stop 200-DMA. ($110.46)
CMG – Pivot point $436.00, sell stop 21-DMA. Long from $433.00 entry area, sell stop 21-DMA. ($436.00)
CROX – Pivot point $17.43, sell stop 50-DMA. ($17.43)
HUD – Pivot point $18.13, sell stop %17.00. ($18.13)
SHAK – Pivot point $59.40, sell stop $57.00. ($59.40)
WYNN – Guide for entry $192.75, sell stop 50-DMA &/or pivot point $195.32, sell stop 50-DMA. Long from
$192.75 &/or $194.30 entry areas, sell stop 50-DMA. ($195.32)
EYE – Pivot point $36.55, sell stop $35.00. ($36.55)
ISRG – Guide for entry $452.00, sell stop 50-DMA.
JAZZ – Guide for entry $163.75, sell stop $160.00. Long from $163.75 entry area, sell stop $160.00.
LGND – Guide for entry $184.79, sell stop $179.00. Long from $184.79, sell stop $179.00.

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NBIX – Guide for entry $93.00, sell stop $90.00. Long from $93.00, sell stop $90.00.
PTCT – Pivot point $32.16, sell stop 23-EMA. Long from $31.00 &/or $32.16 entry areas, sell stop 23-EMA. ($32.16)

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CHAT ROOM WATCHLIST
IMPORTANT: The watch-list of stocks below are in addition to the stocks provided in the newsletter. These stocks
do not follow the trading guidelines outlined above as they are of higher volatility and risk when compared to the stocks
listed above. Any trade in these stocks will be initiated by the admins in the chat room under #traderlion-trades and sent
out through our trade alerts.
MDB – Pivot point $46.26, sell stop $43.70. ($46.26)
OKTA – Long from $40.00 &/or $42.88 entry areas, trailing stops for 1/2 at $50.50 and 1/2 at its 23-EMA.
TZOO – Pivot point $16.75, sell stop $15.70. ($16.75)
CCXI – Pivot point $13.32, sell stop $12.50. ($13.32)
DPLO – Pivot point $25.30, sell stop $23.80. ($25.30)
ECYT – Long from $11.25 entry area, profits taken on 1/2 below its 4-EMA and 1/2 below its 10-DMA on 5/25/18.
GTHX – Long from $41.45 entry area, profits taken below its 10-DMA on 5/29/18. trailing stop 23-EMA.
RCKT – Pivot point $21.00, sell stop $19.50. ($21.00)
RGNX – Long from $41.70 entry area, profits taken on 1/2 below its 10-DMA on 5/21/18. Trailing stop 23-EMA.
RYTM – Pivot point $32.35, sell stop $30.00. ($32.35)
STML – Long from $17.75 &/or $18.00 entry areas, sell stop 23-EMA.
TDOC – Long from $43.35 entry area, trailing stop for 1/2 at its 10-DMA and 1/2 at its 23-EMA.

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DISCLAIMER
The content in this report are provided as general information and educational purposes only and should not be taken as
investment or trading advice. All content herein shall not be construed as a recommendation to buy or sell any security
or financial instrument, or to participate in any particular trading or investment strategy. The author may or may not
have a position in any company referenced in this report. Any action that you take as a result of information or analysis
in this report is ultimately your responsibility. Trading stocks and options are high risk. Past performance is no
guarantee of future returns.

By receiving this report, you agree to the Terms & Conditions outlined our website. Please visit TraderLion.com for more
information.

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