Market Lab Report - Premarket Pulse 6/2/15
Futures are currently lower by roughly -0.3% at the time of this writing as issues in Greece near deadline. International creditors have added pressure on Athens to accept a reform plan but there is no clear cut solution.
Such pullbacks in the face of strong action on behalf of leading stocks can offer entry opportunities on weakness. Nevertheless, should market weakness worsen, always keep your stops tight.
We have had a number of stocks that have been shaping out the right side of their bases or continuing higher:
Security network infrastructure company GIMO had a pocket pivot after it gapped up on strong earnings a few weeks ago. Note how price/volume has been constructive with lower volume on tight price pullbacks. Earnings and sales are strongly accelerating, group rank 31.
Mortgage originator ELLI had a pocket pivot after gapping higher on its recent earnings report. Earnings and sales are strongly accelerating, institutional sponsorship has grown over the last 3 quarters, pretax margin 25.3%, group rank 18.
Vitamin and mineral supplement retailer USNA had a pocket pivot after gapping higher on its recent earnings report. Earnings are accelerating, ROE 31.2%, group rank 21. However, note the weak midbar close.
Apparel manufacturer GIII had a pocket pivot off its 50dma. Earnings are accelerating, institutional sponsorship has grown over the last 7 quarters. This retailer tends to find support at its 50dma so risk here is less. Should the market trade lower at the open, picking up some shares should this company trade to its 50dma could be a low risk opportunity.
Cosmetics maker HELE had a pocket pivot after a tight, sideways consolidation after it gapped up on strong earnings on its prior earnings report. Earnings and sales are accelerating, group rank 21.
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