Market Lab Report - Premarket Pulse 9/7/16
The NASDAQ Composite closed at new all-time highs yesterday, slightly above its recent sideways consolidation as all the major averages rose on higher volume. Yesterday's weak ISM report was seen as pushing any Fed rate hikes further out into the future.
Leading stocks seem to be support this move higher as a number of leading megacap stocks finally broke out of their sideways consolidations on volume such as GOOGL and two of our Focus List stocks, FB and AMZN.
A number of our other focus stocks have made good moves such as ACIA, BABA, EDU, GLD, and TWLO. PI continues to move higher but keep stops very tight as gains have been appreciable in a very short time.
The European Central Bank meets tomorrow to decide whether to prolong its asset-buying QE program beyond March 2017. The ECB has been known for its dovish stance, and persistently low inflation increases the odds of an extension.
The ECB's QE program kicked off in March 2015, and slated to run until September 2016. However, with no signs of inflation returning to 2% in the foreseeable future, they may extend their scheme to March 2017. They also increased the amount of monthly purchases to €80 billion ($89.93 billion) from the €60 billion earlier in March.
Should the ECB decide to extend, this would mark a third iteration of quantitative easing—or QE3—similar to what former Federal Reserve Chairman Ben Bernanke announced in 2012.
Spinal cord stimulation system maker Nevro (NVRO) gapped higher on its prior earnings report then, yesterday, had a pocket pivot after consolidating near its 20-day moving average for the last two weeks. Sales are skyrocketing, institutional sponsorship has grown over the last 7 quarters since the company went public, group rank 10.
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