Market Lab Report - Premarket Pulse 11/9/15
Members should have received over the weekend the first installment of our pocket pivot and buyable gap ups weekly review. We will also cover short-sale set-ups as needed.
Friday's Bureau of Labor Statistics monthly jobs report initially sent U.S. futures to the downside in premarket trade. After the open a tug-o-war ensued. The Federal Reserve is now closer to hiking rates as a result of the strong jobs report as a reflection of a recovering economy which sent the market higher, but concerns remained that tighter money could be a headwind for the market which sent the market lower.
Ultimately, major averages clawed their way back to finish mixed though all averages closed near their highs. Volume rose expressing institutional belief that the data was bullish overall even if rates are hiked sooner than later. The belief is that the Fed will remain dovish thus any rate hikes will be done slowly over time so as not to upset a fragile economy that is trying to recover.
CME FedWatch now puts the odds of a rate hike at 70% when the Fed next meets in December. Indeed, the yield curve steepened as a result of the jobs data, a bullish sign, as flattening yield curves often precede recession.
Semiconductor Inphi (IPHI) had another pocket pivot. Its first one was on October 15, then it had a buyable gap up on October 28. Earnings and sales continue to soar, group rank 42.
Online lender Lending Tree (TREE) had a pocket pivot. Earnings and sales are soaring, tree gapped higher on its recent earnings report, group rank 16.
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