Tag Archives: market lab report

Market Lab Report – Premarket Pulse 8/3/15

Major averages finished flat to down on Friday on mixed volume. While the NASDAQ and S&P 500 remain above their 50-day moving averages, the broader New York Composite Index closed back below its 200-day moving average while the small-cap Russell 2000 is trying to find support along its 200-day line and remains well below its 50-day moving average. Breadth remains an issue as both the NYSE and NASDAQ Advance-Decline lines have continued to make lower lows, and last week showed very weak bounces with as the indexes rallied off of their Monday lows. That rally had a very logical context in that the S&P 500 had reached its 200-day moving average after several days of selling off from the recent highs. Despite the choppy sideways to downward action of major markets, we have had a number of pocket pivot and buyable gap up stocks hit our filters over the past few days. As always, keep an eye on your overall exposure to the markets since the correction that began two weeks ago may not yet have run its course. That said, some of the strongest names can buck market weakness. The clues can be seen in how the stock has traded over the past few weeks relative to the general markets. As with all earnings seasons, make sure that if any stock you may still own is reporting earnings, your position size reflects the possibility of the stock gapping lower as can happen.

Market Lab Report – Premarket Pulse 7/31/15

Major averages were flat to slightly higher on mixed volume. The dollar tumbled Friday after an index measuring the price of U.S. labor declined sharply in the second quarter. Wage inflation thus remained weak in the second quarter indicating the labor market may not be as strong as employment data had reported. The Fed may therefore delay an interest-rate increase. Any data that could inspire the Fed to delay a hike tends to weaken the dollar while strengthening the stock market. Stock market futures moved higher on the news. As the market bounces, new names continue to offer pocket pivot points including: Cloud-based e-commerce platform provider SHOP had a buyable gap up on a strong earnings report. Sales are growing strongly. Given this is an IPO with no earnings, it is a speculative play. Medical device maker ABMD had a pocket pivot breakout. Earnings are soaring, sales are accelerating, group rank 20. ABMD reports earnings before the open on Aug 4. Pharmaceutical drug maker CBM had a pocket pivot on a strong earnings report. Earnings are skyrocketing, institutional sponsorship has grown over the last 4 quarters, group rank 20. Discount airline ALGT had a pocket pivot on a strong earnings report. Earnings are soaring, ROE 34.1%, group rank 80. The low price of oil is helping airline stocks.

Market Lab Report – Premarket Pulse 7/30/15

Major averages rose on lower volume with the S&P 500 closing above its 50dma as the NASDAQ Composite did the prior day.  The Federal Reserve kept rates unchanged. It gave no clue as to a rate hike at its next meeting in September but remained upbeat on the economy. “The labor market continued to improve, with solid job gains and declining unemployment,” the Fed said in its statement. The vote to leave rates alone was unanimous. Fed policymakers next meet on Sept. 16-17. Futures traders put the probability of a rate hike at 59% in December if U.S. growth remains on an upswing. That is still a big “if” since the global economy remains fragile. That said, US markets have historically undergone corrections typically 4-6 months ahead of the first hike, thus if the first hike came 4-6 months from now, that would put it either at the end of the year, or early 2016, presuming the market undergoes a meaningful correction (beyond -10%).  Apparel retailer SKX had another pocket pivot on a strong earnings report. Earnings continue to skyrocket, group rank 4. We have reported on SKX a number of times.