Tag Archives: market lab report

Market Lab Report – Premarket Pulse 7/6/15

Major averages finished last week near breakeven on lower, pre-holiday volume. Futures are down more than half a percent at the time of this writing as Greece rejected debt demands from the EU in a landslide vote. While the action of recent days looks quite bearish, total NASDAQ and NYSE short interest finished at all time-highs while AAII bulls are at the lowest levels since 2009. Markets generally do not crash nor top during such periods. Could this time be different? Given the long-term pessimism regarding the QE-manipulated environment, the problems in Greece, a falling Chinese market despite their interest rate reductions, and one of the flattest markets that cant seem to get up and running, it is not surprising short interest is so high and AAII bulls are so low. Investors are exhausted. But all things taken together, we remain in a QE-fueled market which has kept floors shallow, a soft global economy which spurs on QE, and individual stocks which have continued to prove profitable to our members provided one takes profits in context with the overall chart. Meanwhile, market timing has been at its most challenging in a market that has been one of the flattest in almost a quarter century, but such periods always come to an end. With the potential collapse in Greece, many stocks took hard hits over the last few days. Our guided recipe for our members has been to take profits when you have them in context with the chart, and always keep stops relatively tight since stocks can quickly unravel when the market corrects even 1-2% as we have observed. So despite the tough market environment, handsome gains in stocks with rough profits in parentheses based on our selling guidance either via our webinars or via real-time email report updates have been achieved: SKX (+49.9%), AMBA (+57.8%), CI (+25%), SUPN (+36.5%), KYTH (+41.0%), as well as in others such as VRX, AYI, REGN, etc in just a few to several weeks. This makes all the difference to oneâs profits as the time value is substantial, ie, the time it takes to earn a particular profit.

Market Lab Report – Premarket Pulse 7/2/15

Major averages rose yesterday on lower volume. All major averages sit below their respective 50-day moving averages with exception of the small cap Russell 2000, which yesterday churned around the 50-day line before closing just above it. With Greek headwinds amplifying volatility, the market is not out of the woods as of yet, though word has it that Greece may accept the current bailout terms. US markets are closed tomorrow for the July 4 holiday, so much can happen regarding Greece between now and Monday. A gap up or gap down at the market open on Monday is entirely possible, so manage your position sizes ahead with respect to your personal risk tolerance levels ahead of the long weekend. The market is keying in on today’s unemployment report for June, especially the wage-growth figure. Unemployment fell from 5.5% to 5.3%, the lowest level since spring of 2008, but this drop was due largely to more than 400,000 people leaving the labor force. In addition, the average hourly wage of American workers was flat in June, reducing the year-over-year increase to a lackluster 2% from 2.3% in the prior month. Rate hikes in September may be delayed as a result of this report. Futures are rallying.

Market Lab Report – Premarket Pulse 7/1/15

Major averages closed higher yesterday on mixed volume. European markets are up 1% to 3% as Greek Prime Minister Alexis Tsipras is ready to accept the creditors’ bailout terms after Greece missed a payment deadline yesterday at midnight Athens time. This could serve as basis for a new aid package in coming days, according to the report, and has U.S. futures up sharply this morning. As always, in this news-driven, volatile environment, keep stops tight if you’re still holding onto any positions. Most leading stocks are in broken-down positions within their overall chart patterns, and in most cases it is not necessarily clear that stocks are in low-risk entry positions. With the long 4th of July holiday weekend coming up, markets could simply drift with an upward bias over the next two days.