MLR - PMP 7/9/13
Major averages closed slightly higher on higher volume. Monday's higher volumes were unsurprising as Friday was sandwiched between the Thursday July 4 holiday and the weekend which is traditionally a lower volume day. Earnings season kicks off with earnings from Alcoa (AA) which reported earnings after the close, sending AA at first up a couple percent in after hours trading, but gains then faded to return AA back to its closing price. Premarket, AA is up again as is the general market.
The prior earnings season caused some mild turbulence as earnings overall came in weak. It remains to be seen how the current earnings season will play out. As always, keep a close eye on stops even though the major averages have cleared their respective 50-day moving averages. The Market Direction Model is close to switching out of its sell signal as the bounce may continue higher spurred on by quantitative easing.
Tesla Motors (TSLA) is moving higher pre-open after being added to the NASDAQ 100 Index, effective July 15, where it will replace Oracle (ORCL).
Buyable gap-ups occurred yesterday in Santarus (SNTS) and Priceline.com (PCLN). The respective intra-day lows for use as selling guides for each stock are 22.48 and 872.20.
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