Tag Archives: market lab report

Major averages fell on mixed volume with the S&P 500 closing back below its 50dma and the NASDAQ Composite resting just above its 50dma. With the majors just a little more than -2% off their peaks, the markets could easily fall a few percent further if the choppy, sideways move that started in late 2014 continues. That said, new “actionable” stocks for the watch list have been plentiful, so continue to keep close watch on such names. Should the market find a relatively shallow floor in this extended sideways move, such stocks could present actionable buy points. Meanwhile, a good number of tech juggernauts have posted strong earnings reports for the quarter thus have gapped higher including GOOGL, PCLN, AMZN, EBAY, NFLX, and FB, though AAPL disappointed, and BIIB nosedived sending the biotech group, which had been one of the leading industry groups, lower. Futures are trading lower as the Chinese Shanghai Composite Index SHCOMP ended down 8.5%, its worst daily percentage fall since February 27, 2007. Fears are mounting that Chinese authorities will slow their market manipulations in propping up their markets. Analysts say the selling came as investors fear the government is curbing its buying of blue-chip stocks to test whether the market can support itself. As always, keep stops tight if you are holding any long positions, and take profits where you have them in context with the chart.

Major averages fell yesterday on mixed volume. The S&P 500 and Dow Jones Industrials each closed below their 50-day and 200-day moving averages, respectively, while the broad New York Composite Index moved sharply and further below its own 200-day moving average and the small-cap Russell 2000 Index sliced through its 50-day moving average on the downside. After-hours yesterday Amazon (AMZN) reported blowout earnings, and is set up gap up about 18% this morning. NASDAQ futures are trading higher by about 0.15% at the time of this writing. Whether the action of a few recent big-stock NASDAQ names can turn this market around before it falls further is questionable, and today’s action may be telling in this regard. Branded drug maker Valeant Pharmaceuticals (VRX) had a buyable gap yesterday up on strong earnings. Earnings and sales are accelerating, pretax margin 35.7%, ROE 54.6%, group rank 7. Medical care facilities operator Adeptus Health (ADPT) had a buyable gap up yesterday on a strong earnings report. Earnings and sales are skyrocketing, group rank 2. Keep in mind that buy signal reports sent during market pullbacks are often designed to let members know of constructive action in certain stocks which may make them actionable when the market finds its feet. Otherwise, members should exercise discretion when deciding to act on such signals during potentially unfavorable general market action.