Tag Archives: market lab report

MLR – PMP 4/22/15

Major averages finished mixed yesterday on higher but below average volume. The NASDAQ Composite closed above 5000 as it makes another attempt at definitively breaking through this resistance level for the fourth time. The market’s internals in the form of leading stocks bodes well for the fourth time being the charm, absent, of course, any unexpected news announcements in this event driven market environment. A good number of actionable leading names on the basis of our proprietary fundamental and technical requirements appeared in the form of pocket pivots and a buyable gap up: Criteo (CRTO) had a pocket pivot though it had a weak close in the lower half of its trading range. We reported on CRTO’s prior pocket pivot on April 13. Airline Jet Blue JBLU) – Earnings are accelerating, group rank 34. The price of oil is trying to find a floor but nothing yet definitive. Fiber optic network company Infineon (INFN) had a pocket pivot on a strong earnings report. Earnings are skyrocketing last 5 quarters after being in the red for the most part, institutional sponsorship has grown the last 5 quarters, group rank 24. INFN announced favorable earnings yesterday after the close. Financial services company Credit Acceptance Corp. (CACC) – earnings are accelerating, pretax margin 57.8%, ROE 37.4%, group rank 27. Pharmaceutical company Mallinckrodt (MNK) had a pocket pivot off its 50dma. Earnings and sales are skyrocketing, institutional sponsorship has increased every quarter since the company went public 7 quarters ago, group rank 2. Network security company CyberArk Software (CYBR) had a pocket pivot on gap-up move. Caution is warranted here since this is a fairly sharp move off its lows. Still, earnings and sales are skyrocketing, group rank 7. Network security company Palo Alto Networks (PANW) had a pocket pivot breakout. Earnings and sales are accelerating, group rank 7. While the two computer security companies above had pocket pivots, Fortinet (FTNT) had a buyable gap up after a positive earnings report Monday after the close, closing midbar. While earnings have been sluggish, sales have accelerated, and institutional sponsorship has grown over the last 5 quarters.

MLR – PMP 4/21/15

The major averages rallied yesterday on lower, below average volume, though the lower volume was expected after Friday’s volume-boosting options expiration. China cut the amount of reserves commercial banks are required to hold by one percentage point, a bigger-than-normal reduction that will free up around $200 billion for lending. Markets acted favorably. Indeed, the number of actionable pocket pivots was impressive: Harmon International (HAR) had another pocket pivot after our earlier notice on HAR’s 4/16 pocket pivot. Social networking site FB – pretax margin 56.5%, strong earnings and sales, institutional sponsorship has grown since the company went public 12 quarters ago. Car dealership Lithia Motors (LAD) – earnings and sales are accelerating, group rank 37. Hardware and agricultural retailer Tractor Supply Co. (TSCO) – ROE 29.2%, group rank 65. Cloud-based human capital management software company Paycom (PAYC) – ROE 24.1%, earnings and sales accelerating, group rank 52. PAYC just closed above its 50dma. Electronic postal service company Stamps.com (STMP) – pretax margin 28.1%, ROE 21.5%, accelerating earnings and sales, group rank 24. STMP had three gap ups with its most recent resulting in tight sideways consolidation. Supply chain management software company Manhattan Associates (MANH) – pretax margin 28%, ROE 48.5%, earnings and sales accelerating, group rank 52. Clothing retailer Hanesbrands (HBI) – ROE 44.1%, earnings and sales accelerating, group rank 38. HBI has been trading in a constructively tight range over the last few weeks. Office furniture supplier HNI Corp. (HNI) – ROE 22.4%, strong earnings, accelerating sales, group rank 31. Futures are up about 0.5% at the time of this writing as the NASDAQ prepares for yet another run at the 5,000 level.

MLR – PMP 4/20/15

Major averages got hit hard on higher volume Friday after China allowed short selling while restricting margin buying which increases the supply of stock, and news hit that Greece may default on its debt. Friday was options expiration which added to the total volume traded. Both the S&P 500 and DJIA closed under their respective 50-day moving averages while the NASDAQ Composite found support at its own 50-day line. This pullback may be short lived as the Greek debt default situation has been a bit of a broken record, and China’s decision will curb the buying frenzy that has taken hold in the Chinese markets since March, but should leave other world markets relatively unaffected. Nevertheless, markets are in their trading ranges and may need a little time to heal. Futures are up about 0.4% at the time of this writing on news that China is lowering reserve requirements for its banks.