Tag Archives: market lab report

MLR – PMP 4/6/15

Major averages closed slightly higher Thursday on lower pre-holiday volume before the three-day Good Friday weekend. The S&P 500 and DJIA remain under their respective 50-day moving averages. The unemployment report on Friday showed the U.S. created the fewest new jobs in March in 15 months, with the economy generating just 126,000 new jobs, marking the smallest gain since the end of 2013. The unemployment rate remained unchanged at 5.5% though this figure is highly suspect given that it excludes the large number of workers who have given up looking for work, among other issues. Average hourly wages rose 0.3%, a slower pace than the 2% average since 2010. This gives the Federal Reserve room to keep interest rates at record low levels. Futures tanked about 1% on the unemployment report news. Markets may be concerned that another recession could be on the way, or that quantitative easing is not helping the push the U.S. toward a true economic recovery. Airline stock JetBlue (JBLU) had a pocket pivot on Thursday – Earnings are sharply accelerating, group rank 3. Airline stocks as a group have been weak in recent days, however. Outsourced IT and lifecycle software development services company Epam Systems (EPAM) had a pocket pivot on Thursday – ROE 26.3%, group rank 19.

MLR – PMP 4/2/15

Major averages fell yesterday on mixed volume with the NASDAQ Composite finding support for the second time at its 50dma. The ADP private-sector jobs data and the ISM manufacturing survey both came in weak sending major averages lower by around 1% before they found their footing and bounced to close roughly mid-range. With the major averages still caught in a state of trendlessness, the sidelines remain the best place to be for now as far as market timing is concerned. Stock selection on the other hand remains viable as some leaders are holding up. Keep stops tight and take profits when you have them.

MLR – PMP 4/1/15

âMajor averages fell yesterday on higher volume with both the S&P 500 and DJIA closing once again below their respective 50-day moving averages. Another distribution day was added to the already high tally. The put-call spiked above 1.0 but as we have discussed before, the markets can head lower for a few days or more before finding their floor, so this indicator is secondary at best and must be placed in context with other factors. With levels of QE potentially on the rise in China and with the US Federal Reserve continuing to take a dovish stance, another uptrend could emerge as newly minted money has to fine a home. The stock market presents better returns than the bond markets which have been at near zero rates of interest and will probably continue to hover around such levels for a prolonged period. Pharmaceutical company Cambrex Corp. (CBM) had a pocket pivot breakout. It gapped up on its prior earnings report. Prior to this gap up, its pattern was sloppy, but now with this subsequent pocket pivot, the technical pattern is sufficiently actionable. Earnings and sales are accelerating, group rank 16.