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Market Lab Report - Premarket Pulse 5/12/17

Published : May 12 2017 at 9:11 ET

Major averages fell more than half a percent after the open, but managed to finish near the top of their trading ranges on a slightly lower close. Volume was mixed.

Total CPI in April rose 0.2% matching estimates while core CPI, which excludes food and energy, increased 0.1% vs est +0.2%. On a year-over-year basis, total CPI is up 2.2% and core CPI has increased 1.9%. Of course, the CPI number has been manipulated to reduce the level of inflation which artificially boosts GDP while giving the Federal Reserve more breathing room with interest rates should they decide to slow the pace of rate hikes. Meanwhile, April retail sales increased 0.4% vs est 0.6%. Excluding autos, retail sales rose 0.3% vs est 0.5%. The prior month's reading was revised higher to 0.3% from 0.2%.

Focus List Review

AMZN is holding at its 10-dma where it found support yesterday on a slight volume increase. This puts it in a lower-risk entry position using the 10-dma as a selling guide.

COHR posted a buyable gap-up on Wednesday, and is holding tight as volume declines. The BGU is actionable using the 240 low, 4% lower, as a selling guide. Pullbacks closer to 240 would offer more opportunistic entries, should they occur.

FB is tracking tight sideways as volume dries up. A further pullback to the 20-dema on light volume would present your lowest-risk entry point, if you can get it.

LITE pulled back slightly yesterday, and we would like to see a 50% retracement of the move from the 50-day line over the prior five days. This would bring the stock closer to the 50 price level, which would offer a lower-risk entry point

MOMO found some volume support at its 20-dema yesterday, which puts it in a lower-risk entry position using the 20-dema as a selling guide. Keep in mind that earnings are expected on May 23rd.

NOW pulled right into the 10-dma yesterday, putting it in a lower-risk entry position.

NVDA pulled in from its intraday highs yesterday, but so far has followed through on Wednesday's BGU and base breakout. Pullbacks to the top of the base at 120.92 would offer the lowest-risk entry opportunities.

SNAP has been removed from the Focus List after yesrterday's brutal, post-earnings gap-down break.

SQ pulled back slightly yesterday as volume decline to -30% below average. Low-volume pullbacks closer to the 19.18 BGU intraday low should be used to pick up shares, in our view.

TSLA is near its prior highs, and we would watch for a low-volume test of the 20-dema as a more opportunistic entry.

TTD reported earnings yesterday after the close and is gapping higher this morning. Pre-open trade shows the stock trading above 48, well above the left side of its current cup base formation. This could set up an actionable BGU this morning if the stock can set a solid intraday low.


This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (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. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2017 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.