Tag Archives: market lab report

Market Lab Report – Premarket Pulse 6/16/15

Major averages fell yesterday but managed to close in the upper half of their respective trading ranges as Greece’s debt woes were seen as less of an issue as the day wore on. Volume was higher than Friday’s levels but below average. Because the markets staged a strong second half to the day, a number of stocks had actionable buy points. Nevertheless, some of the major averages are below their respective 50dmas so any buying should be made with caution. Of course, in this QE-manipulated market, such dips are often shallow floors for markets. Futures are currently lower on continued concerns over the Greek debt situation and the upcoming Fed meeting which concludes this Wednesday at 2pm EDT. Pharmacy benefit management service company Diplomat Pharmacy (DPLO) had a pocket pivot. Earnings are accelerating, institutional sponsorship has grown in the 2 quarters since the company went public, group rank 16. Pharmaceutical company Cambrex (CBM) had a pocket pivot breakout. Earnings are accelerating, group rank 38. Fiber optic company Infineon (INFN) had a pocket pivot. Earnings are soaring, group rank 5. Online customized marketing product company Cimpress (CMPR) had a pocket pivot through its 50dma. Earnings are soaring, ROE 48.6%. Lighting products maker Acuity Brands (AYI) had a pocket pivot. Earnings are accelerating, group rank 14. Ambarella (AMBA) is currently at 120.51 at the time of the report we emailed out yesterday and has been enjoying what is probably an intermediate term climax top. Members were notified of its pocket pivot at 75.63. Keep stops tight as climax tops end in a surge of volatility.

Market Lab Report – Premarket Pulse 6/15/15

Major averages fell Friday on lower, below average volume with both the S&P 500 and DJIA closing once again below their respective 50-day moving averages. The Federal Reserve is schedule to meet this week with its policy statement due at 2 p.m. EDT Wednesday. Futures are down at the time of this writing due to rising default fears in Greece. This prolonged sideways market action is frustrating to investors as some quality market commentators have written such sentiments such as: “This means it’s an undecided market where those who play in it will get whipsawed to death. That’s the type of market we like to avoid, and with our unique style of analysis we can avoid with confidence, knowing it will all come back in due course.” And they are correct. It has been a QE-laden minefield of a market. Market timing has been at its most challenging. Fortunately, profitable opportunities for our members continues in a variety of stocks. Indeed, the parade of actionable stocks continues as Friday had additional opportunities in three leading stocks. Note, SUPN’s pocket pivot which we notified members of on 5/29 was up +12.3% on Friday in intraday trading. At this time, we notified members for instructional purposes that some profits can be taken here as this is a “bird in the hand is worth two in the bush” market. SUPN’s peak performance for the day was +12.9% from the prior day’s closing price, and it finished up +11.5%.

Market Lab Report – Stocktalk Sunday Edition 6/14/15

Quick profits for members continue at www.selfishinvesting.com. A few examples: +48% gain in SKX, members notified 4/22 at 74.8, current price: 110.71 +56.2 gain in AMBA, members notified 5/14 at 75.63, current price 118.16 +36.5% gain in SUPN, members notified 5/21 at 13.26, current price 18.1 Note that the above stocks could have been partially sold as they wended their way higher but then bought back in some cases. That said, this is a market of taking profits when a stock gets ahead of itself in price relative to its overall chart and general market. Thus it is important to keep stops tight. Here are some examples: VRX = members notified 4/29 at 212.03. Current price: 229.64. It has also violated its 10dma. But on 5/22 and 5/28 as stated in a prior webinar, VRX was getting ahead of itself in context with its chart, so there was nothing wrong taking profits on these days which would have netted profits of roughly +12% and +14% assuming one sold around the closing price. REGN = members notified 5/8 at 481.29. Current price: 492.29. In a prior webinar, we said REGN was possibly getting ahead of itself on 5/20, so taking some profits is not a bad idea. REGN closed at 516 on 5/21. Taking profits on 5/21 or on the following Monday would have resulted in gains of roughly +7%, not bad considering one was only invested in the stock for 10 days. Also, not all stocks can be quick winners such as SKX, AMBA, and SUPN shown above. But by hitting enough singles, one is liable to hit some doubles and triples. VRX then traded sideways, bolted higher on 6/5, but then gapped lower on 6/10 opening at 505.73. VRX should have then been completely sold at the open, no questions asked. When a stock gaps lower as much as VRX did, it is time to EXIT. CI = members notified over the weekend after the 5/22 closing price of 135.86. Current price: 137.31. CI clearly was ahead of itself on 5/29 when it was up as much as +7% on the day. Given its price history, profits could have been taken on 5/29 or the following Monday on 6/1. It has since had a normal and expected pullback. AYI = members notified on 4/29 at 168.98. Current price: 181.57. On 5/13, AYI was clearly getting ahead of itself as it peaked at 183.53, thus some profits could have been taken. AYI has since traded sideways on a mild pullback. The time value in taking profits on 5/13 is substantial. A month later, AYI is trading roughly at a similar price to 5/13. As one can see, the time value in netting a profit is substantial to any trading account as it sometimes can take less than a month to be up nicely in a stock. But as we have advised many times, the key over the last couple of years has been to take profits when you have them in context with the overall chart and general market. By ‘baby-stepping’ his account in this manner, the co-founder of Virtue of Selfish Investing, Gil Morales, was able to achieved a triple digit percentage return in 2014. And some of our members have told us of their trading account victories despite the challenging QE-driven market. And being able to adjust to market environments greatly sharpens one’s trading ability.