Market Lab Report - Premarket Pulse 10/16/15
Expect more up-down action in the markets. In 2010 and 2011, after the markets corrected sharply, they took a number of months to resume their uptrends after much backing and filling. Then in late 2014, the market corrected then briefly pierced new high ground but then proceeded to move in a more or less trendless manner for months which has characterized most of 2015.
Coffee retailing giant Starbucks (SBUX) had a pocket pivot. Earnings and sales are accelerating, ROE 41.7%, group rank 62.
Social networking giant Facebook (FB) had a pocket pivot breakout. Pretax margin 57.1%, stellar sales growth, institutional sponsorship has grown in every quarter since the company went public 14 quarterrs ago, group rank 13.
Telecom infrastructure company Dycom (DY) had a pocket pivot. Earnings are soaring, sales are accelerating, group rank 3.
Semiconductor Inphi (IPHI) had a pocket pivot on which we reported on 10/7/15, and had another one on a breakout yesterday. Keep in mind breakouts are usually too late to buy in this environment, but watch for evidence of a constructive pullback in the stock before buying. Earnings and sales are soaring, group rank 91.
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