Market Lab Report - Premarket Pulse 7/15/15

Published : July 15 2015 at 8:36 ET
Major averages rose yesterday on lower volume as the major market indexes moved further above their 50-day moving averages. The straight down, straight up market action is characteristic of this news driven, QE-manipulated market. Nevertheless, a number of stocks have been quite profitable this year, and yesterday's screens yielded a number of actionable names.

System-on-a-chip semiconductor company Ambarella (AMBA) had a pocket pivot yesterday. Earnings and sales are skyrocketing, pretax margin 31%, ROE 32.7%, group rank 27. AMBA proved very profitable during its prior actionable buy points (see archives). It then had a very steep correction but only after it had what appeared to be an intermediate term climax top. Thus, the current pocket pivot could end up working should the rally in AMBA still have legs. Note that due to the steepness of the prior correction, some backing and filling could occur so buying AMBA on constructive pullbacks may work better than buying strength.

Biotech antitumor agent company Ziopharm (ZIOP) had a pocket pivot. Earnings are negative and sales nearly zero as this is a development stage company with a number of drugs in its pipeline. Group rank 4.

IT service provider Globant (GLOB) had a pocket pivot yesterday that included a high volume upside reversal. Earnings are accelerating, ROE 27.6%, institutional sponsorship has grown in all three quarters since the company went public, group rank 40.

Biotech supportive care maker Insys (INSY) had an upside reversal pocket pivot yesterday. Earnings and sales are strongly accelerating, pretax margin 35.8%, ROE 64.2%, group rank 4.

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.