MLR - PMP 8/6/13

Published : August 6 2013 at 8:54 ET

Major averages were fairly flat in quiet trade. The outflow of money from bond funds rocketed in July to a record $60.5 billion while there were record inflows into equity funds the same month. Inflows and outflows are usually in line with market action rather than a predictor of future market action.

Tesla Motors (TSLA) reports earnings on Wednesday. After a quick correction to its 50-day moving average, it immediately headed higher and closed once again at new all time highs. This stock has shown itself to be at the top of the class when it comes to leading stocks in the current cycle, and its CEO Elon Musk has been billed as the Henry Ford for the new millenium.

Trulia (TRLA) on which we reported had a buyable gap up is now getting a bit extended as its closing price is nearly 9% from the low of its gap up day.

Solarcity (SCTY) had a pocket pivot, clearing the recent midpoint in the pattern. SCTY is part of the solar energy group which has been ranked near or at the top for weeks, currently at #2. We have reported on SCTY is past reports. Other stocks that have performed well in the group include CSIQ and SPWR, though SPWR sold off on its most recent earnings report. Note, SCTY carries additional risk because it has yet to earn anything and sales are slowing. Its industry group rank of 2 along with potential upside based on prior price action as well as current price action of other stocks such as CSIQ makes it actionable, but position size with care. SCTY reports earnings this Wednesday after the close.

Green Mountain Coffee Roasters (GMCR) had a pocket pivot, and is on the verge of breaking out to new highs. It reports earnings this Wednesday. In the last 3 out of 4 earnings reports, it has gapped up, and only once did it gap down. Earnings accelerated to 45% in the most recent quarter and institutional sponsorship has grown over the last 3 quarters. Position size with care since earnings can cause this stock to gap up or down.

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