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Market Lab Report – Premarket Pulse 6/30/15

Major averages plummeted yesterday along with other major world markets on financial crisis news out of Greece. Volume was above average though lower than Friday’s volume due to Russell rebalancing which greatly exaggerates volumes. A number of major markets had their worst day since 2011 including Germany’s DAX. While it looks as if markets could continue to freefall, we must remember that issues in Greece are much contained to within the European markets and will spur central banks to continue their easy money policy, thus Monday’s severe reaction to Greece may very well take on the character of other crises- short-lived sharp selloffs on the market landscape that cause short-term pain but live to tell another tale as markets find their footing then move higher. The main counter-force, quantitative easing, is alive and well, thus is likely to spur central banks to continue to print for longer than expected. Such actions are a long term negative for world economies, but short term bullish. Nevertheless, keep stops tight since such periods can cause stocks to plummet in short order. Futures came off their lows and are currently higher at the time of this writing, following a report that last-ditch efforts to revive talks between Greece and its creditors were underway.

Market Lab Report – Premarket Pulse 6/29/15

Major averages finished mixed on higher volume with the S&P 500 roughly breakeven, the NASDAQ Composite down, and the DJIA up. Both the S&P 500 and DJIA are under their respective 50-day moving averages while the NASDAQ has failed to hold its recent breakout to all-time highs. Volume was substantially higher all around due to the annual Russell rebalancing. All of that is moot, however, as futures are trading down more than 1% at the time of this writing this morning as problems in Greece heat up. European markets are trading substantially lower while Asian markets closed down 2-3% on the news out of Greece. The broken record continues. ECB President Mario Draghi will likely stress that any issues with Greece will be contained, on point to the ECB’s ability to provide any additional assistance necessary to mitigate spillover into other regions in the event of a Greek default or “Grexit”. That said, Morgan Stanley just lifted its probability of a Grexit in 12 to 18 months to 60% from 45%. Since last November, the market has continued to trade in a sloppy sideways manner, making little headway in either direction. As soon as it looks as if the market is going to have a nasty slide, it finds its footing then moves higher. As soon as it looks as if the market is going to breakout to the upside in a sustainable trend, it pauses and heads lower. Timing the indices, thus, has been the ever formidable challenge. Fortunately, individual stocks continue to provide profits, and in some cases, the profits can be quite substantial. As we have guided members, stocks that get ahead of themselves, quickly offering an 8%, 10%, 12%+ profit, should be at least partially sold while some other stocks may do no wrong and offer far greater gains (25%, 35%, 45%+) before being sold. Developing one’s chart eye for price in context with the stock’s chart and the general market is key. We continue to teach investors through our webinars, the FAQs, and the email notifications so one can take their chart reading ability to new heights.

Market Lab Report – More profits and selling guidance for members at www.selfishinvesting.com

A few examples: +49.9% gain in SKX, members first notified 4/22 at 74.8, current price: 112.09 – Two of the last three days were sold on higher volume so the tight upward move in SKX may be over. Not a bad place to take handsome profits. +57.8% gain in AMBA, members first notified 5/14 at 75.63, current price: should have already sold! – As we notified members, profits should have been taken on 6/19 when it sold off on appreciably higher volume, or at the open the next day at the very latest when AMBA gapped lower. If you still have a position in AMBA, it’s giving you a dead cat bounce here, so exit now. +25.0% gain in CI, members first notified 5/23 at 135.86, current price: 169.77 – As we notified members in the recent webinar, the stock had a recent gap up and is moving higher. So far, it is trading well though could get overheated if it has another day or two of the upside action seen Friday. +36.5% gain in SUPN, members first notified 5/21 at 13.26 – current price: should have already sold! – As we notified members, on 6/12 and 6/15, SUPN was getting overheating in its price action so could have been at least partially sold. On 6/16, SUPN gapped lower so should have completely been sold. If you still have a position in SUPN, don’t wait around. The price action is taking on a bearish wedging character. Â