Tag Archives: market lab report

MLR – PMP 3/23/15

Major averages finished higher Friday on higher volume due to quadruple witching. The NASDAQ Composite managed to close firmly above the 5000 level as it approaches its all time-high of 5132 set back in March 2000. The S&P 500 is just under all-time highs while the small-cap risk-on Russell 2000 was the first major index to hit new all-time highs 3 days ago. Leading stocks have meanwhile managed to make a nice comeback. Indeed, the number of actionable stocks continues to swell over the last few trading days as our members have observed.

MLR – PMP 3/20/15

Major averages finished mixed yesterday on lower volume. The NASDAQ Composite is closing in on 5000 once again. Futures are trading strongly higher by more than 0.6% at the time of this writing which would put the NASDAQ at an opening price of over 5020. Today is quadruple witching which means heavy trading volume. Internet content provider Tencent Holdings (TCEHY) gapped higher on a strong earnings report. It did not trade enough for a pocket pivot but given its size and volume traded on the day, it qualified as a buyable gap up in context with its overall chart. Note, this company is an ADR which tends to gap up and down within its pattern. Earnings are accelerating, pretax margin 37%, ROE 34.8%. Cell-based cancer immunotherapy company Juno Therapeutics (JUNO) had another pocket pivot. We reported on this company’s pocket pivot when it had one a few days ago. Group rank 1.

MLR – PMP 3/19/15

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 âpatientâ 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.