MLR - PMP 10/27/14

Published : October 27 2014 at 8:36 ET

Major averages rose Friday on lower volume with the S&P 500 closing just a hair under its 50-day moving average and the NASDAQ Composite edging just above its own 50-day line. The bounce looks intact as the number of leading stocks continue to set up including a number of biotechs which are currently ranked #1 among industry groups. Biotech holders trust ETF BBH has broken out to new highs, and we have sent reports on biotech stocks among other stocks including ALXN and ILMN that have recently become actionable.

Markets are anticipating a Fed announcement of extended QE3 or a new round of QE4 when the Fed meets Oct 28-29 such that this hard bounce could continue higher, albeit perhaps at a slowed pace. Meanwhile the crowd is looking for a "retest" of the lows of a week-and-a-half ago, thus is set up to be fooled. Our view is that investors should simply focus on individual stock set-ups as they emerge in real-time, and our real-time reports are intended to assist in this regard.

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