MLR - PMP 1/15/14

Published : January 15 2014 at 8:31 ET

The NASDAQ Composite hit a new 13-year high yesterday as it closed up 1.69%, but on volume that was lighter relative to Monday's heavy selling day. While the NASDAQ made new highs, the S&P 500 and Dow did not regain all of Monday's losses and remain within sideways ranges. Futures are up this morning as the markets again make a bid for higher highs. Most leading stocks recovered from Monday's sell-off, although 3-D printing stocks have come under pressure after lowered guidance from Stratasys (SSYS) and Exone Company (XONE). The group has been hot and may be in a bit of a "cooling off" process as other leaders surge to the forefront.

Major averages forged ahead undoing Monday's losses helped in part by analyst upgrades on Intel (INTC). As one can see, tapering talk will have a dampening effects on the markets, essentially what such talk did all last year, but quantitative easing in some form puts a floor under the markets. We also note how leading stocks continue to get hit far greater than the major averages so it is important to account for this in your trading.

Tesla Motors (TSLA) broke out of a cup-with-handle base yesterday on huge volume. The breakout also constituted a pocket pivot, triggering our sending out of a PP alert early in the day.

Workday (WDAY) price a secondary offering last night at $89 a share. Unlike other leaders that have announced secondary offerings and subsequently saw their share price dive, WDAY is moving higher this morning in pre-open trade.

Our end-of-day screens picked up a number of pocket pivots yesterday:

NXPI - Bouncing off its 50-day moving average. Group rank 47, institutional sponsorship has climbed 7 quarters in a row, strong earnings up 52% in the latest quarter.
CSIQ - solar power company with group rank 2, strongly accelerating earnings and sales. This pocket pivot was a continuation pocket pivot.
ALXN - biotech company with group rank 1, pretax margin 39.5%.
ALGN - Bouncing off its 50-day moving average. Medical company with group rank 11, strongly accelerating earnings and sales. ALGN gapped up on its last earnings report, has since based, and is trading near new highs as odds favor a breakout.
JKS - solar power company with group rank 2, strongly accelerating earnings and sales.
GOOG - internet juggernaut with group rank 7, steady price increases, but prone to violating its 50dma since it is a supercap company.
AVGO - semiconductor company with group rank 47, accelerating earnings and sales, institutional sponsorship has increased over the last 12 quarters, pretax margin 30%.

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