MLR - PMP 10/6/14

Published : October 6 2014 at 9:11 ET

Major averages rose Friday on declining volume for a second day in a row. Both the S&P 500 and NASDAQ Composite are close to their respective 50dmas. Given that QE ends this month, and the European Central Bank's Mario Draghi did not mention anything about increasing its level of QE when he spoke last week, the current correction may not yet be over even though on a short-term basis, the market is putting in a bounce. European markets remain in a downtrend as they've corrected on average more than 13% based on the IEV ETF which tracks a basket of European markets.

Camera-based advanced driver assistance system Mobileye (MBLY) had a buyable gap up on Friday, opening at 57.15, and currently at 58.8. While the prior pattern is a bit sloppy, it is an IPO so higher than normal volatility can be expected. That said, if you decide to invest in this name, keep these factors in mind because volatility will likely remain high. Earnings and sales are robust, pretax margin 30.2%, ROE 25.1%, group rank 73.

Biotech Medivation (MDVN) had a pocket pivot three days ago and is still actionable. On the day of MDVN's pocket pivot, you will remember the markets were aggressively heading lower, thus the hesitance on sending a report on MDVN on that day. But since the market is bouncing at this juncture, MDVN looks actionable. Earnings and sales have surged higher, group rank 2.

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