MLR - PMP 10/24/14

Published : October 24 2014 at 8:33 ET

Major averages were up on mixed volume. The NASDAQ Composite hit its 50-day moving average and then retraced while the S&P 500 came within a breadth of its 50-day moving average before retracing. Given the lack of good stock set ups on the long side, this bounce still remains suspect. Nevertheless, hopes for an extended QE3 are loud and clear when the Fed meets at the end of this month which could push markets higher as QE has done so after past market corrections since QE3 began in 2013. That said, the market has come straight up from lows so more noisy volatility can be expected. Futures are currently lower after a doctor in New York was diagnosed with the Ebola virus last night.

Biotech Alexion Pharmaceuticals (ALXN) had a buyable gap up yesterday with an intraday low of 177.72 as a selling guide. Earnings are robust, pretax margin 42.9%, ROE 28.7%, group rank 2.

Demonstrating that this is a market of stocks, first and foremost, big-stock bio-tech Biogen Idec (BIIB) is rallying back up to its 200-day moving average after gapping down on earnings two days ago. The stock is shortable on this rally using the 200-day line, plus another 2-3% on the upside according to one's risk tolerance, as a guide for an upside stop.

This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.