MLR - PMP 12/11/13

Published : December 11 2013 at 8:40 ET

Major averages were lower on mixed volume. Small-cap stocks, as measured by the Russell 2000, took the biggest hit, down -.90% on the day vs. the lesser -.20% decline of the NASDAQ. The number of distribution days continue to climb and breadth continues to narrow, yet the averages remain firmly in their uptrend as quantitative easing continues. We've also noticed a number of pocket pivots shown below. That said, dont let seasonal complacency make you any less mindful of your sell stops which are in place to minimize your risk. In fact, the "seasonable favorability" of December is something of a myth, given that eight other months average better gains. What does tend to be a strong period are the last five trading days of the year and the first two of the new year.

Three-D Systems (DDD) pocket pivoted yesterday. The 3-D printing space remains strong with a group rank of 8. DDD's earnings and sales are accelerating, institutional sponsorship has grown 7 quarters in a row.

Harman Industries (HAR) had a pocket pivot yesterday. Institutional sponsorship has grown 5 quarters in a row.

Incyte Pharmaceuticals (INCY) had a pocket pivot yesterday. While the company does turn a profit, this is not unusual for young bio-techs with upside potential, and the bio-tech group remains strong with a #37 ranking among all industry groups.

Vipshops (VIPS) had a big-volume bounce off of its 50-day moving average that closed positive which qualified as a pocket pivot. VIPS' earnings are accelerating tremendously, and institutional sponsorship has grown in every quarter since the company went public seven quarters ago.

Stocks currently in short flag formations and/or which are tracking along a key moving average and which should be watched for possible actionable buy points include AMZN, BIIB, PCLN, SBGI, SSYS, and WAGE.

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