Tag Archives: market lab report

Market Lab Report – Premarket Pulse 10/16/15

Major averages finished higher yesterday on higher though below average volume. The NASDAQ Composite closed once again above its 50-day moving average and has broken out through a declining tops trend line extending back to the late July highs. Part of the bullish tone is due to China’s decision to start deregulating its state-owned telecom industry, a move seen as a continuation in the stirrings of China’s underbelly where they remain staunch communists in word but their actions over the last many years have pushed toward more economic freedoms, taking half a billion Chinese out of poverty and into the middle class. And the breakneck growth in Shanghai and Beijing since the late 90s is testament to that. Indeed, the IMF recently announced that it considered China the world’s leading economy, ahead of the US. Of course, this is subject to debate. Nevertheless, according to the highly regarded Cato Institute, the Chinese government has been happy to allow for economic freedoms as long as the faster economic growth did not threaten the state sector or challenge the Partyâs political power. For those interested, here is a recent piece on China’s tendency toward capitalistic ways: http://www.pewresearch.org/fact-tank/2014/10/10/chinas-government-may-be-communist-but-its-people-embrace-capitalism/ Expect more up-down action in the markets. In 2010 and 2011, after the markets corrected sharply, they took a number of months to resume their uptrends after much backing and filling. Then in late 2014, the market corrected then briefly pierced new high ground but then proceeded to move in a more or less trendless manner for months which has characterized most of 2015. Coffee retailing giant Starbucks (SBUX) had a pocket pivot. Earnings and sales are accelerating, ROE 41.7%, group rank 62. Social networking giant Facebook (FB) had a pocket pivot breakout. Pretax margin 57.1%, stellar sales growth, institutional sponsorship has grown in every quarter since the company went public 14 quarterrs ago, group rank 13. Telecom infrastructure company Dycom (DY) had a pocket pivot. Earnings are soaring, sales are accelerating, group rank 3. Semiconductor Inphi (IPHI) had a pocket pivot on which we reported on 10/7/15, and had another one on a breakout yesterday. Keep in mind breakouts are usually too late to buy in this environment, but watch for evidence of a constructive pullback in the stock before buying. Earnings and sales are soaring, group rank 91.

Market Lab Report – Premarket Pulse 10/15/15

Major averages fell yesterday on higher volume. While the NASDAQ Composite is now back below its 50-day moving average, the S&P 500 pulled down into its 50-day line on lighter volume in constructive fashion. The Dow Jones Industrial Average came in the weakest as Wal-mart (WMT), one of the Dow 30 stocks, had one of its worst days on record on disappointing revenues. The market is essentially a highly rotational mixed bag as yesterday saw retailers get slammed while many semiconductor names like INTC, NXPI, and others rallied sharply. Thus making consistent progress long or short is very difficult in the current environment, which argues for a less aggressive approach as the market continues to sort itself out. Futures are up almost 1% at the time of this writing as the markets in China and Europe rally on relief that the Federal Reserve will most likely not hike rates this year. CME FedWatch puts the odds of a rate hike at the Fed’s next three meetings as follows: Oct 28: 2% Dec 16: 33% Jan 27: 41%

Market Lab Report – Premarket Pulse 10/13/15

Major averages barely budged yesterday on lower Columbus Day volume. The NASDAQ Composite closed just above its 50-day although the index, like the S&P 500, is showing some slight wedging action as it edges higher on declining volume. The number of actionable names remains few but some stocks are setting up should this bounce continue. Whether this translates into big money-making opportunities or just more of the same sort of unsustainable short-term moves we’ve seen in this market throughout 2015 is an open question. We will keep members apprised of any opportunities should they present themselves in real-time. Futures are down around half a percent as weak economic reports out of Germany and China weigh on the markets. Commodities have been trading lower over the last two days. The global economy remains unwell thus have spurred foreign central banks to keep or increase their easy money policies.