MLR - PMP 12/4/14
Major averages rose yesterday on lower volume. Futures fell when the European Central Bank announced it would leave its key interest rates unchanged at record lows, thus no additional QE is in the offing, reinforcing its position that with rates near zero, borrowing costs cannot go any lower. Futures then found their quick floor and bounced after ECB president Draghi said asset purchases for at least the next two years will instead be the primary means for the ECB to further stimulate the eurozone's struggling economy and raise the troublingly low levels of inflation, which at 0.3% on an annual basis last month was far below the ECB's target of just below 2%. To add to the deflationary pressures, analysts said they expect inflation to weaken to zero this month on the back of lower oil prices.
Managed healthcare service provider Centene (CNC) had a pocket pivot. Earnings and sales accelerating, institutional sponsorship up 7 quarters in a row, group rank 22.
Tesla Motors (TSLA) has moved below its 200-day moving average and is currently gapping down slightly pre-open. Our near-term downside target on the stock is the low of the prior base at 217.32, with the 177.22 May low representing the second, longer-term price target. Keep in mind, however, that when it comes to shorting, "longer-term" can be anywhere from as short as 2-3 weeks or as much as 3-6 months or more.
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