Tag Archives: market lab report

MLR – PMP 1/2/15

Major averages ended 2014 with roughly -1% sell-offs on higher volume adding another distribution day onto the already sizeable count. Leading stocks continue to lag while defensive industry groups are showing strength. The major averages, when they have hit new highs as of late, have done so on low volume. So while the market is looking tentative, quantitative easing has been a formidable opponent to the bears and has surprised the majority since 2009, pushing the market to new highs on a regular basis. That said, opportunities have presented on both the long and short side of the market, so we continue as always to keep a close eye on such opportunities, updating members in real-time when actionable entry points present themselves. Peace and prosperity in 2015.

MLR – PMP 12/31/14

Major averages closed lower yesterday on mixed but well-below average holiday volume as the NASDAQ Composite posted a distribution day off the peak. Futures are up slightly this morning in anticipation of a quiet New Year’s Eve trading session. Oil has yet to show anything close to resembling a price floor, so while quiet trading should be expected today and Friday, don’t get complacent if you have positions that are not acting properly. Over the past few days we have seen virtually no actionable buy signals appearing in leading stocks as most flashed such signals over the last 1-2 weeks as the market turned off the lows of three Tuesdays ago. Most leading stocks that showed strength as the market turned at that time are now pulling back, some into areas of logical resistance, which might provide lower-risk entry points for those pullbacks that are occurring constructively. Otherwise the market is showing some signs of fatigue not unlike that seen at the start of December, and we look forward to whatever opportunities the market has in store as we move into the New Year. Both of us wish all of you a very Happy New Year and a prosperous and profitable 2015. Salud! Dr. Chris Kacher Gil Morales

MLR – PMP 12/30/14

Major averages were roughly breakeven yesterday on low holiday volume. Most leading stocks pulled back after gains made since the market lows of two Tuesdays ago. Oppenheimer downgraded the cyber-security group, leading most of these stocks to reverse with Palo Alto Networks (PANW) taking the brunt of the selling. It is possible that as these stocks pull into areas of potential support they approach lower-risk entry points which investors should be alert to. Given that New Year’s Day falls on Thursday of this week, light holiday trading should persist until Monday Jan 5, barring any major news shock. That said, oil continues to aggressively trend lower as it broke to new lows on Monday. The fast fall in oil can have deleterious effects on other areas of the markets and also in other countries. The United Arab Emirates said that the oil cartel would accept a price slump right down to $40 per barrel, or roughly another 25% fall from current levels.