Tag Archives: market lab report

Market Lab Report – Premarket Pulse 7/29/15

Major averages rose on higher volume with the NASDAQ Composite closing above its 50dma though other major averages are still under their respective 50dmas.  The two-day Federal Reserve meeting concludes today with a statement due out at 2 p.m. EST. The odds of a rate hike in September are lower due to market turmoil in China and a continuing slide in commodity prices including oil. The Commodity Research Bureau Index is at 6-year lows, and is very close to breaking to 13-year lows. Thus, the dovish Fed’s hands are tied in terms of hiking rates seeing that weak demand is indicative of a recessionary global economy.  Meanwhile, we had a number of new pocket pivots hit our radar. This does not mean to buy blindly since the market may not have yet found a floor. That said, the best stocks will often start to rise ahead of the pack, so keep a close watch and position size in line with your risk tolerance levels.  Pharmaceutical maker ANIP had a pocket pivot. Earning are accelerating, pretax margin 34.6%, institutional sponsorship has grown over the last 8 quarters, group rank 9. Healthcare savings company HQY had a pocket pivot. Earnings and sales are accelerating, institutional sponsorship has grown since the company went public 4 quarters ago, group rank 51. Airliner JBLU had a pocket pivot. Earnings are skyrocketing, group rank 94. Medical product company EW had a pocket pivot on a strong earnings report. Pretax margin 20.6%, earnings are accelerating, group rank 18. Biotech XON had another pocket pivot. Earnings and sales are soaring, group rank 2. We reported on XON’s earlier pocket pivot on 6/5. Visualized analytics software company DATA had a pocket pivot. Earnings and sales are soaring, institutional sponsorship has grown over the last 6 quarters, group rank 21. Website hosting company GDDY had a bottom fishing pocket pivot. While the company is a strong leader in its space, it is an IPO with no earnings out to 2016 so is speculative, thus of higher risk.  

Market Lab Report – Premarket Pulse 7/28/15

Major averages fell but on lower volume after the Chinese markets tanked once again. All major averages are under their respective 50dmas, but should the market continue the sloppy sideways pattern it began in late 2014, it could find a floor sooner than later. That said, the  market lives to surprise so further damage could be in store. Thus, it is always more important to safeguard against losses, so if you are still long any stocks, keep stops tight as moving to cash is always prudent when the market is undergoing a correction, even if a minor one. Stocks in this environment tend to take the staircase up and the trapdoor down. Futures are up more than 0.5% at the time of this writing as the two-day Federal Reserve meeting kicks off today. A statement is due at 2 p.m. on Wednesday. Chairwoman Janet Yellen has previously indicated that a rate increase is on the cards before the end of the year, though expectations for a September hike have faded, partly due to market turmoil in China and a continuing slide in commodity prices including oil.  “The Fed will surely bring the Chinese selloff and commodity rout under their consideration and will tailor their response accordingly. We do not think that Yellen will fan the fire any further by bringing the exact timeline for a rate hike. In fact, there is a strong possibility that she may water down those expectations and use a very dovish approach,” said Naeem Aslam, chief market analyst at AvaTrade, in a note.  Indeed, Yellen is well known for her dovish stance on not undoing what the central bank has done with respect to quantitative easing since 2009. Â