After last week's move to the downside, I figured there would be a lot of changes to the IBD 50, and there were, so I want to highlight the characteristics of some names that continue to hold up well.

Here's what's changed.

Removed: World Wrestling Entertainment, Inc. (WWE), ABIOMED, Inc. (ABMD), Ligand Pharmaceuticals Incorporated (LGND), Fortinet, Inc. (FTNT), SVB Financial Group (SIVB), Holdings, Inc. (ALRM), Adobe Inc. (ADBE), Mastercard Incorporated (MA), Control4 Corporation (CTRL), Trex Company, Inc. (TREX), Ubiquiti Networks, Inc. (UBNT), Orion Engineered Carbons, S.A. (OEC), Visa Inc. (V), The Progressive Corporation (PGR), Intuitive Surgical, Inc. (ISRG), Intuit Inc. (INTU), Old Dominion Freight Line, Inc. (ODFL) and EPAM Systems, Inc. (EPAM).

Added: Medifast, Inc. (MED), Globus Medical, Inc.(GMED), Integra LifeSciences Holdings Corporation (IART), Tractor Supply Company (TSCO), Supernus Pharmaceuticals, Inc. (SUPN), Sabra Health Care REIT, Inc. (SBRA), Dollar General Corporation (DG), UnitedHealth Group Incorporated (UNH), WildHorse Resource Development Corporation (WRD), Sprouts Farmers Market, Inc. (SFM), Euronet Worldwide, Inc. (EEFT), Advanced Micro Devices, Inc. (AMD), VICI Properties Inc. (VICI), CareTrust REIT, Inc. (CTRE), Cactus, Inc. (WHD), IDEXX Laboratories, Inc (IDXX), Five9, Inc. (FIVN) and Ingersoll-Rand Plc (IR).

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Eighteen week-over-week changes to the holdings of the exchange-traded fund (ETF) that tracks the IBD 50 – the Innovator IBD 50 ETF (FFTY) – are the most I've seen since we added it to our Chartbook in July. I guess that shouldn't be a big surprise given the weakness in high-beta stocks, since many of the IBD 50 names tend to be higher beta.

Chart showing the performance of S&P High Beta vs. S&P Low Volatility

Here's a daily chart of the IBD 50 ETF, which is back near its year-to-date lows as momentum gets oversold and the 200-day moving average begins to flatten out. While this support should provide some sort of bounce, unless we quickly get back above former support near $35, the best bulls can hope for is likely some base building at current levels.

Chart showing the performance of the IBD 50 ETF (FFTY)

If you're looking for long exposure in this environment, then you have to be a lot more selective, ideally participating in stocks that are showing bullish characteristics on multiple timeframes. A good example of this is Apple Inc. (AAPL).

On the weekly chart, we see a clear uptrend in the stock, with prices consolidating through time above our former price target and working off a slight bearish momentum divergence.

Weekly performance chart for Apple Inc. (AAPL) stock

Tactically, prices have been consolidating over the last two months between $214 and our upside objective near $228. Considering the selling pressure in other Nasdaq 100 names, this is a much more constructive way to digest its gains and work off the momentum divergence.

Daily performance chart for Apple Inc. (AAPL) stock

Some other names with similar characteristics are Advanced Micro Devices, Allison Transmission Holdings, Inc. (ALSN), Integra LifeSciences and Viper Energy Partners LP (VNOM).

Premium members of All Star Charts can view the charts of those stocks and the other components in the updated IBD 50 Chartbook.

The Bottom Line

This is a much tougher environment to trade on the long side. However, we can still find opportunities in names that are showing clear trends and bullish momentum characteristics across multiple timeframes. By trading in the direction of both the structural and tactical trends, we can increase our probability of success in a market environment where a neutral/bearish approach toward the major indexes appears best.

Thanks for reading, and let us know your thoughts!

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