Market Lab Report - Premarket Pulse 8/23/16

Published : August 23 2016 at 9:11 ET

Major averages finished almost flat near the top end of their trading ranges on lower volume, unsurprising after Friday's options expiration when volume tends to be larger.

As reported yesterday:

Japanese provider of a leading mobile networking platform Line (LN) is pulling back toward its 10-day moving average on a volume dry up (VDU) pattern. LN had an extended pocket pivot on 8-12 then launched to new highs on a U-turn pattern. It has since been in the process of digesting those gains. Buying closer to its 10-day line reduces risk. Earnings and sales are skyrocketing, group rank 11.

Keep in mind this is an IPO thus subject to greater than normal volatility so handle with care. We are long a position in LN.

Data driven enterprise platform provider Talend S.A. (TLND) had a pocket pivot off its 10-day moving average yesterday. TLND is an IPO so is subject to greater volatility. While it has only been trading for less than a month, such formations can work but handle with care. Sales are accelerating, group rank 6.

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