MLR - PMP 1/16/14

Published : January 16 2014 at 8:35 ET

The major market averages rose on higher volume, closing at new highs on the S&P 500, NASDAQ Composite, and Russell 2000. The large number of pocket pivots together with continued QE bodes would appear to bode well for a continuation of the uptrend that began January 2, 2013. As always, we remain viligant for abnormal changes in selling pressure but with a higher threshold given the nature of QE and with the basic premise of not fighting the Fed.

Chinese mobile security company Netqin Mobile (NQ) had a buyable gap up after announcing a deal with Sprint to deliver NQ's technology on all new Spring Android-powered smartphones in the U.S. market later this year. The deal adds legitimacy to the company which counters the accusations of fraud which sent the company plummeting on October 24, 2013. Earnings and sales are hugely accelerating, group rank 14, pretax margin 37.5%. Keep in mind this is a small cap Chinese company so risks are elevated.

Twitter (TWTR) is making an attempt at a shakeout-plus-three type of move, closing exactly three points above its prior 58.57 low in the pattern from December 30th. The stock is trading down slightly this morning and investors might look for a stronger move above the 10-day moving average as confirmation of the shakeout buy point.

Solar stocks continue their run this morning and are gapping up strongly on a Bloomberg report that Shunfeng Photovoltaic International plans to invest the equivalent of $4.1 billion to develop its own solar projects in 2014.

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