Tag Archives: market lab report

MLR – PMP 11/18/14

Major averages ended mixed yesterday on lower volume. Despite the uneven and flattish action of the indexes, declining stocks led advancing stocks by nearly 2-1 on the NASDAQ and 17 to 13 on the NYSE. Internally, the market is correcting, despite the fact that the indexes continue to make or hold up at new highs. A number of big-stock leaders have remained weak, such as Facebook (FB), which is currently stuck in what appears to be a bear flag following its post-earnings gap-down and late-stage breakout failure in late October. Yesterday FB reversed on increased selling volume, and investors should watch for a downside “breakout” in FB. With Japan back in recession despite their aggressive pro-QE “Abenomics” and Europe teetering on the brink of a third recession since 2009, the global economy remains stuck despite all the central bank QE-driven easy money policies. As it has been said, we’re in uncharted territory. As always, let price/volume be your guide when going long or short, but know there have been plenty of profitable opportunities even in this uncharted environment.

MLR – PMP 11/17/14

​Major averages traded essentially flat on lower volume Friday showing a lack of institutional interest while the market continues to digest its gains. The NASDAQ Composite made another 14-year closing high while the S&P 500 eked out a new closing high. Crude oil and other commodities continue their downtrends as the global economy continues to lag as China had yet another report this week showing a slowdown in their growth. Nevertheless, major averages continue to trend into new all-time or multi-year high ground as the uptrend has so far shown strength and resilience. But with each passing day, odds favor a pullback of some measure. Whether it is a typical pullback contained to within 3-4% accompanied with sideways action such as seen in July and early August of this year or something more serious remains to be seen. Leadership remains scant. Futures are down this morning on overnight news out of Japan that the country has slipped back into a recession despite “Abenomics,” ostensibly the massive printing of yen, which has failed to produce any meaningful economic growth. Overnight the Nikkei had its biggest drop since August, down -2.96%. Bitauto (BITA) had a pocket pivot on Friday after a strong earnings report. Earnings continue to surge ahead, group rank 34.

MLR – BABA Review 11/14/14

We sent out an actionable report on BABA on October 21 when it was trading around 91 as we spotted a high quality in-the-base pocket pivot on that date. It is currently trading around 115. Members have asked us if it is wise to get in now. Of course, at this point, it is quite extended. But the beauty of what we call continuation pocket pivots is that even if you missed the in-the-base breakout or the standard base breakout, the stock will often issue an above-the-base ‘continuation’ pocket pivot if it is a true leader. Thus as BABA consolidates its sharp gains, it is best to wait for a continuation pocket pivot. We will immediately send out an email to members once this occurs.