MLR - PMP 10/9/14

Published : October 9 2014 at 12:30 ET

Major averages bounced hard on firmly higher volume after the Fed minutes came out. The rally was more of a relief rally as the Fed stayed rate friendly and said nothing new. The 50dma could act as resistance to the NASDAQ Composite and S&P 500 though price/volume of leading stocks and major averages was constructive. In times past, the market tends to become increasingly volatile near floors and such may be the case. That said, QE ends this month so the bounce may be shorter lived than expected. MDM continues to watch for signs of a bounce that can follow through vs a market that wants to continue its downtrend. 

A number of quality pocket pivots ensued:

Twitter (TWTR) had a pocket pivot off its 10-day moving average. Earnings positive last 3 quarters, sales soaring, group rank 11. We hold a position in TWTR.

Cannabinoid manufacturer GW Pharmaceuticals (GWPH) had a pocket pivot off its 200-day moving average.

Semiconductor Silicon Motion (SIMO) had a pocket pivot. Earnings and sales have (FL) had a pocket pivot. Earnings are accelerating, group rank 27.
Of the three biotechs Regeneron Pharmaceuticals (REGN), Illumina (ILMN), and Alexion Pharmaceuticals (ALXN) we mentioned that were getting close to pocket pivot volume, REGN traded enough volume for a pocket pivot.

Gilead Sciences (GILD) also had a pocket pivot yesterday coming up through its 10-day moving average.

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