Market Lab Report – Premarket Pulse 9/16/15

By | September 16, 2015

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Major averages rose yesterday on slightly higher but below average volume ahead of tomorrow’s decision on whether to hike interest rates when the Federal Reserve concludes its two-day meeting. While the economy has been showing signs of improvement, concerns of the slowing global economy especially in China remain at the forefront. Should the Fed decide to hike rates sometime this year, it would be the first time in nine years. If the markets reacts badly, the Fed could then do as they did in the 1930s when the government had to unwind massive debt burdens thus eased for a prolonged period a la QE4 after a premature rate hike. On  the other hand, should the market react well, it could be a sign of a truly recovering economy as the stock market tends to lead the economy. But that is a big IF as that would imply the economic reports have been distortion free. CME FedWatch now puts the odds of a rate hike at 25% in September and 41% in October. Meanwhile, a number of pocket pivots surfaced: Medical device maker Abiomed (ABMD) had a pocket pivot. Earnings are skyrocketing and sales are strongly accelerating, group rank 14. ABMD gapped up on its prior earnings report. Building materials manufacturer U.S. Gypsum (USG) had a pocket pivot off its 50-day moving averagedxc. Earnings are robust, ROE 29.9%, group rank 6. USG gapped up on its prior earnings report. Breakfast cereal manufacturer Post Holdings (POST) had a pocket pivot, and is one of the very few stocks showing the ability to buck the major market’s action. Earnings have turned around, sales are soaring, institutional sponsorship has grown over the last 7 quarters. group rank 19. POST gapped higher on its recent earnings report. Cloud-based human capital management software maker Paycom (PAYC) had a pocket pivot. Earnings and sales are robust, ROE 24.1%, group rank 42. PAYC gapped higher on its recent earnings report. Scalper1 News

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