Tag Archives: market lab report

MLR – Premarket Pulse December 9, 2013

The major market averages rallied sharply Friday following a strong Bureau of Labor Statistics jobs report. However, the rally came on lower volume. Leading stocks remain a mixed bag while the major averages continue their uptrends. Big social-networking names LinkedIn (LNKD) and Facebook (FB) both had mini-buyable gap-up moves at the open Friday as they both gapped above their 50-day moving averages. However, only LNKD held up on the day as FB reversed at its 50-day line on slightly heavier volume. LNKD was up on an analyst upgrade based on the belief that LNKD will soon be launching its services in China. LNKD remains a leader in its space, although it has been base-building for the past several months. It’s group rank is #4 while earnings and sales growth has remained strong. Leading technology stocks have been showing relatively more strength as of late, and FB could simply require more time to form the right side of a potential new base. In the meantime, we would need to see some constructive, bona fide buy points emerge along the lows of the base to help confirm that sufficiently to make the stock actionable on the long side. Other stocks that are holding tight sideways and/or trying to round out the lows of recent consolidations and which should be watched here for possible pocket pivots include Illumina (ILMN), Chicago Bridge & Iron (CBI), Harman Industries (HAR), Vipshops (VIPS), and Sinclair Broadcasting (SBGI). Should any of these stocks become actionable, we would expect to issue real-time reports as appropriate.

MLR – Pre-Market Pulse for Wednesday, November 27, 2013

The major market averages rose on higher volume, with the S&P 500 and the Dow Indexes showing some churning action as they gave up all of their gains in the last 20 minutes of trade. The NASDAQ led the way yesterday with a 0.58% gain on heavier volume as big-stock NASDAQ names like Google (GOOG), Apple (AAPL), Amazon.com (AMZN), Baidu (BIDU), and Priceline.com (PCLN) all move higher. These stocks are all looking to open higher this morning. NXP Semiconductors (NXPI) flashed a pocket pivot yesterday as it broke out of a short three-week flag formation. This follows a buyable gap-up move that occurred after the company announced strong earnings about a month ago. Institutional sponsorship has risen over the last 6 quarters, ROE 43.5%, earnings are accelerating. Infoblox (BLOX) is gapping lower in pre-market trade after a weak earnings report yesterday after-hours. Despite the stock’s impressive pocket pivot in yesterday’s trade, BLOX had two above average volume days where it cut through its 50-day moving average, and that, together with impending earnings, underscored the higher risk in calling its pocket pivot actionable. Expect light trading ahead of the Thanksgiving holiday weekend, which will be briefly interrupted on Friday with a shortened half-day trading session. There is a statistical tendency for such periods to be bullish, but know that any negative news could push markets briefly lower as occurred the day after Thanksgiving in 2009 when the NASDAQ gapped down and closed lower on the day by -1.73% on negative news coming out of Europe.

MLR – Premarket Pulse 11/25/13

Major averages rose on mixed volume with the S&P 500 finishing at a new high. The uptrend continues. TASR had a pocket pivot. Earnings and sales have accelerated and institutional sponsorship has increased over the last 8 quarters. WAGE also had a pocket pivot. Earnings and sales are robust, group rank 18, and institutional sponsorship has increased over the last 6 quarters since the company went public. BIIB had a buyable gap up on a strong earnings report. Sales have accelerated and earnings remain robust, especially for a stock this size. Group rank 42. Keep stops tight on your stocks as when this market pulls back even 1-2%, the better names often sell off much harder, giving back in one or two days what it took one or two weeks to achieve. QE forgives the general averages while higher octane stocks can get pummeled.