Market Lab Report - Premarket Pulse 4/7/16
Major averages rose yesterday on mixed volume as crude oil inventories came in below expectations, sending the price of oil higher as well as stocks as the correlation between the two vehicles remains high at certain junctures. The minutes from the FOMC meeting came in as expected showing concerns regarding global economic and financial developments which warranted a more cautious approach.
The Chinese version of Twitter, Weibo (WB), had a pocket pivot breakout. Of course, one should buy this on weakness as it moves closer to its 10- or 20- day moving averages as it tends to hit both as it trends higher. WB has made a strong advance since its prior earnings report. Earnings and sales are skyrocketing, group rank 49.
Semiconductor Nvidia (NVDA) had a high volume upside reversal pocket pivot off its 10-dma. Earnings and sales are accelerating, group rank 23. The stock gapped higher on its prior earnings report and institutional sponsorship has grown over the last 3 quarters.
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