Tag Archives: market lab report

MLR – PMP 2/11/15

Major averages rose yesterday on higher volume. The rally was attributed to hopes regarding the issues in Greece whose situation is volatile to say the least, thus Greece’s future remains subject to change without much notice which can add to market volatility. Indeed, German Finance Minister Wolfgang Schaeuble made it official Tuesday after the close: The likelihood is that there wonât be any quick resolution of the latest version of the Greek debt crisis. Whether the market can resolve its current lack of direction during an environment that may be somewhat news-volatile is an open question. The action of individual stocks likely becomes more relevant as potential clues may pile up before a resolution one way or the other. LinkedIn (LNKD) was able to weather a pullback to the lows of its recent BGU intraday trading range, closing yesterday near the top of a three-day range. Tableau Software (DATA) pulled down roughly within the -2% to -3% downside porosity allowable for more volatile stocks, and was able to close yesterday above the 95.16 intraday low of last week’s BGU intraday range. Developmental bio-tech name Intrexon (XON) had a gap-up type of pocket pivot yesterday, but is a bit extended as of yesterday’s close. Israeli cyber-security name CyberArk Software (CYBR) had a sharp upside move up through its 50-day moving average that qualified as a “roundabout” type of pocket pivot as it attempts to come up and off the lows of a potential double-bottom base. CYBR is expected to announce earnings tomorrow after the close.

MLR – PMP 2/10/15

âMajor averages fell yesterday on lower volume as they remain in a trendless state (of mind). Further issues in Greece as well as weak trade figures out of China underscored the global slowdown which quantitative easing has, so far, failed to reverse. Exports in China fell 3.3% in January from a year ago, while imports dived nearly 20%. This morning futures are up sharply in another display of the random, erratic nature of this market environment. Very little is being seen in the way of actionable buy points, and where some have occurred there has been very little, if any, upside progress. Thus a patient approach is argued for, with investors remaining mostly in cash as they let this period of directionless volatility pass.

MLR – PMP 2/19/15

Major averages did an about face on Friday to close in the red on mixed volume as they continue to trade in a sloppy trading range that started in December. Little headway has been made in market timing with ETFs as a consequence of the market environment. The Market Direction Model remains in cash. This morning futures are down sharply on news of more “Grexit” issues, underpinning the choppy, often unpredictable nature of the market these days. LinkedIn (LNKD) gapped up on a strong earnings report then closed near the low of its range. The closer one buys to the low of the trading range, the lower the risk since one’s sell stop is presumably no more than 2-3% below the low of the trading range. The caveat is that a stock that closes in the lower half shows hesitation and weakness. That said, LNKD’s lower half close was in keeping with the weakness of the general markets. Thus one could attempt to buy a position knowing their risk is mitigated since one would allow no more than a 2-3% undercut of its Friday low. On the other hand, one may wish to avoid it altogether since it didn’t very well buck the general market weakness. Such choices can be challenging to an investor who must then weigh whether LNKD would hit its sell stop despite its initial strong gap up on earnings, especially should the market remain directionless.