Market Lab Report - Premarket Pulse 8/9/16
Major averages closed a hair lower on lower volume. Trading ranges were tight across the markets. This is constructive after seeing Friday's vigorous move higher. Tight price action is also being seen in big-stock leaders like Facebook (FB) and Amazon.com (AMZN).
The pullback in precious metals may represent a buying opportunity as Friday's jobs number was mostly the result of statistical machination. About 80% of the 255,000 jobs reported was due to a Birth/Death model adjustment that added 200,000 jobs to the number. Thus the idea that the Fed will be raising rates soon is not necessarily a sealed deal, so to speak. News-related pullbacks in the precious metals have represented buying opportunities every time in 2016.
Semiconductor Maxlinear (MXL) had a pocket pivot on a strong earnings report. Earnings are soaring, pretax margin 23.8%, ROE 38.9%, institutional sponsorship has grown over the last 6 quarters, group rank 13. We mentioned MXL on July 24 as a possible candidate that could be bought on its pullback.
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