MLR - PMP 2/24/15

Published : February 24 2015 at 8:56 ET

Major averages finished near break-even after trading lower for much of the day. Volume was lower. This is the ninth straight gain for the NASDAQ Composite, a feat not seen in roughly 4 1/2 years. Indeed, over the last several trading days, the majors have had a tendency to close at or near their intraday highs, a sign of support. Quality stocks continue to show strength overall.

Medivation (MDVN) continued higher after its pocket pivot while CyberArk Software (CYBR) reversed course on record volume after it was downgraded. That said, analysts that downgrade a stock simply on overextended valuations often get it wrong as strength begets strength such that stocks that appear "too high" often go on to make further appreciable gains. So while competitor Palo Alto Networks' (PANW) addressable market is nearly five times larger than CYBR's market, market valuation of CYBR even at CYBR's "extended" price is less than one-sixth that of PANW, suggesting that CYBR has room to grow. Further, some analysts say the group is hard to value. But as we have said many times before, when you have profits in a short time in this market environment, take them.

In other action, Taser International (TASR) and airline Virgin America (VA) had very subtle pocket pivots within their current bases.

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