MLR - PMP 12/3/13

Published : December 3 2013 at 8:42 ET

Major averages fell on higher volume compared to Wednesday and Friday trading volumes. Both days are traditionally lighter volume days due to the Thanksgiving holiday weekend. Volume overall was below average. Leading stocks continue to lag the major averages, though with a couple exceptions, underscoring the importance of picking the right stocks.

Chinese real estate website Soufun (SFUN) had a pocket pivot. Earnings and sales are robust, institutional sponsorship has grown last 3 quarters, pretax margin 51.4%, ROE 125%. SFUN provides real estate marketing, listings, and other data through its site.

Acadia Pharmaceuticals (ACAD) had a pocket pivot. It has had an exponential ascent, so its two big volume down days are understandable given the overall context of when they occurred. ACAD makes small molecule drugs for the treatment of CNS disorders.

Fracking company US Silica Holdings (SLCA) had a pocket pivot. One might think it is extended from the 10-dma and also didnt break out. But in context with where its trading relative to its base, the pocket pivot is valid. Also, while it did close midbar, it is most likely due to the general market pulling back. We have reported on SLCA in prior reports.

Gogo (GOGO) had a pocket pivot. GOGO provides wifi access on airlines. GOGO earnings are currently negative, though sales have been accelerating with the most recent quarter up 48%. The overall chart formation is constructive but take into account that this stock has yet to earn anything for at least 2014, and the space could be quite competitive as larger companies could barge into GOGO's space to arrange contracts with major airlines. It is also volatile so position size accordingly. We reported on GOGO in prior reports including on its pocket pivot and buyable gap up in early November.

NXP Semiconductors (NXPI) had another pocket pivot yesterday within a short four-day range since last week's pocket pivot which we reported on. The stock has found some resistance at the prior highs and appears to be setting up for a breakout.

Tesla Motors (TSLA) is gapping up nearly 5% this morning after Morgan Stanley named it a "top pick." TSLA is not in a proper position for a buyable gap-up, although high short interest could cause the stock to bounce further if shorts scramble to cover.

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.