MLR - PMP 6/19/13

Published : June 19 2013 at 8:59 ET

Major averages rose on mixed volume. The Fed's policy statement comes out today. While the market showed nervousness over the past few weeks that the Fed may slow quantitative easing which started the market into its correction, the market as well as leading stocks appear to be finding traction. Rather than trying to predict how the market will react, the market direction model continues to monitor price/volume action of leading stocks and major indices, as this constant monitoring in real-time has enabled the Market Direction Model to well outperform the major averages over every market cycle since 1991 as well as in backtests dating back to the 1920s. That said, 2012 was the model's most challenging year, yet due to 2012's trendless environment, 2013 has also been challenging, but May was a good month for the model which we consider promising given the minor adjustments made to the model to better handle this type of heavily QE-influenced environment.

Regeneron Pharmaceuticals (REGN) just barely had a pocket pivot in Tuesday's trade. Earnings and sales are massive. Institutional sponsorship has increased 7 quarters in a row. Industry group rank is 6. We have reported on this stock in prior reports.

LED-lighting manufacturer Cree (CREE) broke out of a 3-weeks-tight formation on a pocket pivot volume signature. Earnings and sales have accelerated, with earnings up 70% and sales up 23% in the latest quarter compared to the same quarter a year ago.

Tesla Motors (TSLA) just missed having a pocket pivot off of its 10-day moving average. This morning the stock is down a small amount based on a limited recall of TSLA's S Model to replace a potentially defective bracket in the back set of the car, not a major mechanical issue. If the stock remains down after the bell, it could present a buying opportunity as it has continued to build a high, tight flag despite the continued mutterings of naysayers who want to believe the stock is nothing more than a short-squeeze. The latest short-sale numbers should be out shortly, but as of the end of May over 18 million shares of short interest were still in the stock, implying that by that time less than 1/2 of the shorts in TSLA had covered.


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.