MLR - PMP 10/1/14

Published : October 1 2014 at 9:12 ET

Major averages fell yesterday on noticeably higher volume due to the end of the third quarter. The S&P 500 and NASDAQ Composite now sit just under their respective 50-day moving averages.. Leading stocks are looking more troubled. It is a battle between easy money policies and an economy which is taking longer to heal than expected despite QE. Let your position sizes, if any, reflect this challenging period.

Short-sale targets Tesla Motors (TSLA) and LinkedIn (LNKD) have moved lower since we mentioned them in Monday's Pre-Market Pulse. TSLA remains in a position where it has violated the 50-day moving average, and the short-term downside target is the 200-day moving average in the 215-216 price area using the 50-day moving average, currently at 254-255 as a guide for an upside stop. LNKD found resistance at its 20-day moving average on Monday and has moved a few percent lower as it broke through its 50-day moving average yesterday. The short-term downside target is the 200-day moving average, currently in the 207-208 area, while maintaining an upside stop at the 20-day line, currently in the 216-217 area.

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