Tag Archives: market lab report

MLR – PMP 4/9/15

Major averages rose on higher though below average volume, A number of leading stocks have outperformed and a number of new actionable names have been observed. The Chinese Shanghai stock market has also moved dramatically higher, more than 20% in the last 20 trading days, with its central bank favoring an accelerated pace of quantitative easing. Pocket pivots in yesterday’s action: Drug maker Akorn (AKRX) – earnings and sales are skyrocketing, pretax margin 38.2%, ROE 44.1%, institutional sponsorship has grown 10 quarters in a row, group rank 3. Keep in mind this stock has a number of gaps in its pattern so risk is elevated. Drug maker Mallinckrodt (MNK) – earnings and sales are skyrocketing, institutional sponsorship has grown since the company came public or 7 quarters in a row, group rank 3. Chinese internet retailer Vipshops (VIPS) – earnings and sales are skyrocketing, ROE 61.3%, institutional sponsorship has grown 8 quarters in a row, group rank 51. Airline company JBLU – earnings are accelerating, group rank 12. Airlines have benefited from the low cost of oil. Construction products company Trex Co. (TREX) – earnings are accelerating, ROE 37.8%, group rank 15. We reported on this company March 30.

MLR – PMP 4/8/15

Major averages fell on lower volume yesterday, reversing latter in the day to close in the red after being up for much of the day. Despite QE on full bore and interest rates at all time lows, the high number of distribution days, and a market that is having issues gathering upside momentum both may be ill omens for the general market. To some extent this remains a market of stocks as opposed to a stock market, with opportunities emerging in individual names just when one least expects them. For example, network security software company CyberArk Software (CYBR) has rallied sharply up and off of its 50-day moving average so far this week and is set to gap-up this morning to retake the 60 price level. It had a pocket pivot yesterday as well. Earnings and sales are soaring, group rank 13. CYBR gapped up on its prior earnings report. Twitter (TWTR) also acts well here after a “voodoo” or extreme volume dry-up on the pullback to its 10-day moving average last Friday, and was up strongly yesterday on a pocket pivot volume signature.

MLR – PMP 4-7-15

Major averages rose on higher volume yesterday but volume levels were lower than Wednesday’s volume, showing institutions are not coming back into the market with vigor. The weak unemployment report tilts the odds in favor of the Fed keeping rates at unusually low levels for longer than expected (as expected). But the market has been expressing exhaustion since December despite the QE-favorable environment. The price of oil jumped on signs of improving demand in Asia after Saudi Arabia raised its official price for Asia buyers. This action, while positive, does not a floor make, so the downtrend could easily resume in the days or weeks ahead. With continued slackening global demand, stocks are fighting a serious headwind despite the buoyant forces of quantitative easing. .