Market Lab Report - Premarket Pulse 12/16/15
Markets continued to rebound ahead of today's Fed meeting where they will decide whether or not to hike rates. CME FedWatch puts the odds of a hike at 81%. The bounce in the price of oil catalyzed yesterday's rally. The NASDAQ Compose closed near the low of its trading range while the S&P 500 closed roughly midbar. The day's volume on both indices came in lower expressing institutional uncertainty ahead of today's Fed announcement.
Electronic postage service Stamps.com (STMP) had a pocket pivot. It gapped higher on its prior earnings report then traded sideways until today when it made new highs. Earnings and sales are accelerating, pretax margin 28.1%, group rank 1.
Chinese developer of plasma-based drugs China Biologic Products (CBPO had a pocket pivot breakout. Pretax margin 52.4%, ROE 33.6%, institutional sponsorship has grown over the last 7 quarters, group rank 54.
Keep in mind our views on buying on constructive weakness instead of on strength in this type of market environment as your risk drops the closer your entry is to your sell stop.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.