MLR – PMP 3/19/15

By | March 19, 2015

Scalper1 News

Major averages bolted higher yesterday after the Federal Reserve came out with their statement at 2 pm EST. Volume was higher across the board. The Federal Reserve removed the word “patient” from its statement implying it would be more aggressive in raising rates, but this could also be seen as the Fed letting economic data, absent of any Fedspeak jargon, dictate when hikes should begin. That said, the Fed said they would become solely data dependent when unemployment fell below 6.5% which happened about a year ago. This suggests 6.5% was a lie as were the lower unemployment rates that have been reported since. Can the Fed be more than just a political body that relays manipulated data to the public? Adding to the market’s surge was the Fed’s “dot plot”, a survey of what Fed officials think rates should be at certain times, which implied rate hikes would be slower to rise going forward. MDM switched to a buy shortly after the Fed released its report as institutional upside volume was plentiful showing the market’s reaction to the Fed’s report was strongly bullish… for now. Accompanying today’s strong action were a number of pocket pivots: Drug developer Alexion Pharmaceuticals (ALXN) had a pocket pivot off its 50dma and 200dma. Earnings and sales are strong, pretax margin 51.2%, ROE 37.5%, group rank 1. Coffee retailer Starbucks (SBUX) had a pocket pivot. We reported on SBUX when it gapped up on a strong earnings report in late January. ROE 41.7%, group rank 9. Mattress furniture retailer Select Comfort (SCSS) – Earnings and sales strongly accelerating, ROE 28.2%, group rank 64. Biotech juggernaut Biogen Idec (BIIB) had a pocket pivot. Earnings are strongly accelerating, pretax margin 45.6%, ROE 33.8%, group rank 1. Footwear retailer SKX had a pocket pivot. SKX gapped up after its recent earnings report. Earnings remain strong. Fast food restaurant chain retailer Sonic (SONC) – Earnings and sales are accelerating, ROE 67.7%, group rank 9. SONC gapped up after its prior earnings report. Semiconductor Tessera Technologies (TSRA) – Strong earnings, pretax margin 67%, ROE 27%, group rank 11. Scalper1 News

Scalper1 News