MLR - PMP 7/2/14

Published : July 2 2014 at 8:31 ET

Major averages rose strongly on higher volume as leaders continued to advance. All major averages hit new multi-year or all-time highs. Biotechs were one of the leading groups of the day as a number of them advanced into new high ground or rounded out their bases from the prior correction.

Biotech leader Biogen Idec (BIIB) had a pocket pivot yesterday as it broke out of its handle. Sales are accelerating strongly, pretax margin 41.1%, group rank 27.

3-D bioprinting company Organovo Holdings (ONVO) had another pocket pivot. We reported on this stock just recently.

Biotech Gilead Sciences (GILD) had a pocket pivot/breakout. Earnings and sales are accelerating strongly, pretax margin 41.7%, ROE 33.4%, group rank 27.

Pharmaceutical stock Salix Pharmaceuticals (SLXP) gapped higher yesterday after reporting favorable results for one of its drug trials. Earnings and sales are strongly accelerating, institutional sponsorship has grown 5 quarters in a row, pretax margin 35.8%, ROE 34.3%, group rank 2.

Solar stock GT Advanced Technologies (GTAT) had a pocket pivot yesterday on a base breakout. Future earnings are huge, the technical action is excellent, and certain members of the group have done well. We hold a position in GTAT.

Cloud networking software provider Arista Networks (ANET) had a buyable gap up yesterday on an analyst upgrade. Earnings and sales are soaring, ROE 87.9%.

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