MLR - PMP 1/8/14
The major market averages were up on higher volume. The minutes from the December 18th Fed meeting are due to be released today at 2pm ET. The Fed has said if the economy gets better this year, it will increase tapering, but not so much as to derail the recovery. On the other hand, should the economy sour once again, the Fed will increase its monthly bond purchases. So the stock market appears to be in a "Goldilocks" situation with a safety net either way.
Our screens caught many quality pocket pivots on which we reported in yesterday's trade during market hours including:
GOGO(GOGO) as it came up through its 50-day moving average after violating the line two days prior. GOGO's competitor Global Eagle Entertainment (ENT) had a pocket pivot the day before GOGO and which we reported on Monday. We have reported on GOGO in prior reports. Both companies provide airlines with internet access for passengers. Both companies are small caps but have big room to grow.
Vipshops (VIPS). This comes after our previous mention of VIPS when it had a pocket pivot on 1/2/14.
Splunk (SPLK) had a buyable gap up yesterday using the 73 intra-day low as your selling guide. This comes after our pocket pivot report on SPLK on 1/2/14.
Internet search provider Yandex (YNDX) had a pocket pivot off its 10-day moving average. Institutional sponsorship has grown over the last 6 quarters, group rank 4, pretax margin 38.9%.
Our after market screens picked up the following quality pocket pivots:
Finisar (FNSR) - earnings and sales are turning around nicely.
Jazz Pharmaceuticals (JAZZ) - Institutional sponsorship has increased over the last 18 quarters since the company went public. JAZZ has had its share of spin outs due to the way markets are made in this stock, but has redeemed itself over the last many months. Group rank 11, pretax margin 52.3%, ROE 44.2%.
New Oriental Education & Technology Group (EDU), a Chinese provider of language training and test preparation courses to 2.5 million students. EDU tends to obey its 50-day moving average. Group rank 29.
Synaptics (SYNA) had a gap down when it last reported earnings, but has since managed to form a constructive pattern. Yesterday's pocket pivot was off its 50-day moving average. Earnings and sales have accelerated strongly, group rank 22.
Healthcare content provider Webmed Health Corp. (WBMD) had a pocket pivot on a base breakout. WBMD is a turnaround play, group rank 4.
Website publisher Web.com Group (WWWW) had a continuation pocket pivot off of its 10-day moving average. ROE 36.8%, institutional sponsorship has increased over the last 6 quarters.
Pre-open we note gap-up moves in Micron Technology (MU) following a strong earnings announcement, and Qihoo 360 Technology (QIHU)
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