Tag Archives: market lab report

Market Lab Report – Premarket Pulse 4/30/15

Major averages exhibited the usual volatility following the Fed’s monthly policy announcement, struggling to find direction before closing down on the day. Volume was mixed with the S&P 500 logging another distribution day while the NASDAQ traded lower volume. The Market Direction Model went to a sell signal on Tuesday, but the market’s upside reaction on the Fed maintaining its position pushed the MDM back into a buy signal yesterday. Volatility may continue to rule the day. As for the Fed’s decision, the ten Fed officials were unanimous in voting to keep rates in at a record low range of 0 to 0.25%, where they have been since December 2008. The Federal Reserve on Wednesday maintained an optimistic tone about economy despite the weak first quarter, as they have done many times before. After all, they have to keep up appearances. âAlthough growth in output and employment slowed during the first quarter, the committee continues to expect that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the committee judges consistent with its dual mandate,â the official Federal Reserve statement said. This is consistent with Fed Chairwoman Janet Yellen’s intention to be data-dependent in deciding when to raise interest rates. Meanwhile the Fed eliminated any reference to a possible date when they might eventually raise interest rates, leaving the door open to “data dependence.” Drug maker Valeant Pharmaceuticals (VRX) had a pocket pivot. Earnings and sales are accelerating, pretax margin 35.7%, ROE 54.6%, group rank 14. Lighting products manufacturer Acuity Brands (AYI) had a pocket pivot. Earnings are accelerating, group rank 17.

Market Lab Report – Premarket Pulse 4/29/15

Major averages finished mixed yesterday on mixed volume though managed to recover some of their losses. Leading stocks overall, however, took it on the chin for the second day in a row. Such action implies difficulty ahead. Today’s Federal Reserve meeting concludes with the release of the Fed’s statement around 2:15 pm EST. Given the continued uncertainty and weakness in the global economy, their dovish stance so far is likely to persist. This could spark a rally. A number of leading stocks, however, have been compromised, most notably Twitter (TWTR), which missed badly on earnings yesterday. TWTR contributed to a bit of drama yesterday when its earnings results were leaked before the close, leading to a stock halt as the stock began to trade down to the 47 level. The stock was re-opened before the close, and ended the day at 41.11, down over 18% on the day. Hardware and software security systems company Vasco Data Security (VDSI) had a buyable gap up on a strong earnings report. Earnings are skyrocketing, sales are accelerating, pretax margin 22.7%, group rank 6.

Market Lab Report – Premarket Pulse 4/28/15

Major averages reversed course yesterday on higher, above average volume with many leading stocks including a number of tech and bio-tech names also doing about-faces. The bio-tech sector was hit particularly hard as a broad swath of these stocks came unglued. Such activity can be particularly negative and mark a short-term top. Since the markets have had issues when it comes to developing into any sort of longer uptrend since December, it would not be surprising to see a short-term pullback once again. MDM may go to sell signal to see how the pullback develops. Stay tuned. That said, the Federal Reserve concludes its two-day meeting on Wednesday. They have taken a fully dovish stance in prior statements. Given the lagging global economy, their position has been to keep rates historically low until there is sufficient evidence of an economy that is turning the corner. This has yet to happen, and is probably a longer way off than analysts think.