MLR - PMP 2/6/15

Published : February 6 2015 at 9:16 ET

Major averages rose on lower volume yesterday as institutions seem unconvinced that this current rally has legs. Much of yesterday's gain came on news that Greece may work out a deal with the other countries in the EU. Of course, Greece has been a highly volatile component thus today's gain may be fleeting. Major averages, while having cleared their respective 50-day moving averages, are closing in on resistance as they retest the highs of their current volatile sideways range. Whether they can clear to higher highs remains an open question as this has previously represented stiff resistance to any further advances.

Today's jobs number came in stronger than expected, while the unemployment rate rose to 5.7%. This is likely seen as a non-event by the market, and it will be a matter of how the indexes act as they move up and encounter resistance at current levels.

Some new leadership is emerging here as others lag:

Generic drug maker Lannett Companies (LCI) had a buyable gap up on a strong earnings report. Pretax margin 40.2%, ROE 33%, earnings and sales are skyrocketing, institutional sponsorship grew last 7 quarters, group rank 8.

Visualized data analytics software maker Tableau Software (DATA) had a buyable gap up also on strong earnings. Skyrocketing earnings and sales, institutional sponsorship grew last 5 quarters, group rank 57.

Semiconductor Ambarella (AMBA) - strongly accelerating earnings and sales, pretax margin 23.1%, group rank 14. AMBA's pocket pivot occurred in anticipation of a strong earnings report from GoPro (GPRO) after the close yesterday, and while GPRO did have a strong report, its forward guidance was lacking, causing AMBA to move lower as well in the after hours.

LinkedIn (LNKD) is gapping up to all-time highs this morning as it emerges from a multi-month base after announcing strong earnings yesterday after the close. This will likely qualify as a buyable gap-up, and we will report on this later on the day as it develops.

Twitter (TWTR) is also gapping up sharply after earnings, but is not in a constructive position within its overall chart pattern.

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