Tag Archives: market lab report

MLR – PMP 4/14/15

Major averages fell yesterday on mixed volume, reversing earlier gains. The NASDAQ Composite showed the most strength as a number of tech heavyweights advanced including NFLX, PCLN, and FB which had an actionable pocket pivot. Meanwhile the NASDAQ Composite continues to bump up against the 5,000 level where it is finding resistance, but this appears normal within the context of the prior five-day rally coming up through the 50-day moving average. As we move into spring earnings season the market may be poised to break out depending on the outcome of earnings announcements from key leading stocks. Note that NFLX’s recent pocket pivot was theoretically not actionable due to its major gap down in October on earnings and its smaller gap down in March. This type of volatility is best avoided when it comes to selecting leading names. Nevertheless, should one wish to try their hand on a stock such as NFLX on the day it had a pocket pivot that closed above its 50-day moving average on 4/10/15, the risk level may be within your tolerance levels, thus manageable. Social networking company Facebook (FB) had a pocket pivot. Earnings and sales have remained robust in this competitive space. Pretax margin 56.5%, institutional sponsorship has grown every quarter since the company went public 12 quarters ago. The price structure has been tightly constructive over the past week. While FB had a midbar close, this is contextually acceptable given yesterday’s weak performance by the major averages. Still, the market could back and fill once again so keep stops tight as always. Leaders often resist minor pullbacks in the market. Internet advertising company Criteo (CRTO) had a pocket pivot. Earnings are soaring, sales are robust, group rank 35. The company had two prior gap ups on strong earnings over the last 6 months as it rounds out its basing pattern. Medicinal cannabinoid manufacturer GW Pharmaceuticals (GWPH) had a pocket pivot. It is rounding out its basing pattern in constructive fashion. This company is the leader in this space. CyberArk Software (CYBR), which had a pocket pivot five days ago is pulling back constructively, and yesterday pulled into its 10-day moving average on a “voodoo” volume signature.

MLR – PMP 4/13/15

Major averages rose Friday on lower volume marking the NASDAQ Composite’s third attempt to definitively break above 5000. While the number of distribution days remains large, leading stocks have been looking increasingly constructive in their patterns as the number of actionable names we have emailed to members has been evident over the past week. Still, due to the unconvincing upside volume, some additional backing and filling would not come as a surprise. But some leading stocks can go their own way, regardless of the direction of the major averages.

MLR – PMP 4/10/15

Major averages rose yesterday on mixed volume. The Chinese markets continued to jump higher as China’s central bank accelerates the pace of its quantitative easing program. This is in alignment with other central banks around the world. The US markets have been moving sideways but market internals in the way of stock leadership suggests odds favor the major averages breaking out to the upside, though some back-and-forth action may occur as the major averages have expressed some reluctance. Photonic IC chip maker Infineon (INFN) posted a pocket pivot yesterday. Earnings are soaring, sales are accelerating, institutional sponsorship has grown the last 3 quarters, group rank 8. INFN had a gap up on its prior earnings report. We first reported on INFN on March 9.