MLR - PMP 10/29/14
Major averages rose yesterday on higher volume. The Russell 2000 which is a small cap risk-on index finally managed to close above its 200dma for the first time in weeks. Leadership has improved though FB earnings came out after the close sending the stock down about 8% which also caused NASDAQ futures to drop.
The Fed's 2-day meeting concludes today at 2 p.m. EDT. Markets should be relatively quiet barring any unforeseen news ahead of whether the Fed will extend QE3, discuss the possibility of QE4, or stand pat of no more QE but continue to say it will keep rates at unusually low levels for a prolonged period. In the days ahead, it will be key how price/volume action in leading stocks and major indices evolves in reaction to whatever the Fed says as it is not the news itself that is important.
Mexican "healthy" fast-food restaurant-chain operator El Pollo Loco (LOCO) had a pocket pivot yesterday. Earnings are soaring, group rank 14. The stock is expected to announce earnings next week.
Transaction software provider Synchronoss Technologies (SNCR) had a pocket pivot yesterday due to a strong earnings report. Group rank 10, pretax margin 23.3%.
Israeli developer of exoskeletons for the treatment of wheelchair bound individuals ReWalk Robotics (RWLK) traded enough volume for a pocket pivot then closed almost breakeven in the lower half of its trading range. If you bought a position in this stock, keep your stops tight as volatility is pronounced given that this is a microcap company with no earnings so the risk is elevated. Earnings are expected any day now, so one might wait to see what the stock does after earnings.
Twitter (TWTR) is an IPO POD type of short-sale set-up and yesterday's gap-down move appears shortable using the 44.58 high of yesterday as a guide for a quick 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.