MLR - PMP 9/17/14

Published : September 17 2014 at 8:56 ET

Major averages spent most of the day on the rise in mixed volume as the work of quantitative easing was clearly evident. Fund managers were quick to either rejoin the uptrend or add to their positions as they struggle to keep up with the S&P 500. The bounce was logical given Monday's extreme oversold condition that took a number of leading stocks right down to their 50-dma where they found support. The Fed reports later today on whether they will keep rates low for a prolonged period, but given Fed Chairperson Yellen's dovish stance, odds favor easy money regardless of their rhetoric.

Some pocket pivots were seen yesterday in stocks that found support within their patterns:

Railcar manufacturer Trinity Industries (TRN) had a pocket pivot at its 10-dma but is coming off a downtrend of several days. Earnings and sales are strongly accelerating, group rank 17.

TRN's cousin, Greenbrier Companies (GBX) had a pocket pivot in a similar position off of its 10-dma.

Footwear retailer Skechers USA (SKX) had a pocket pivot at its 10-dma. Earnings are soaring, sales are accelerating, group rank 7.

Automobile seat climate control manufacturer Gentherm (THRM) found pocket pivot support at its 50-dma. Earnings are soaring, institutional sponsorship has grown over the last 6 quarters, group rank 30.

Medical research equipment maker Illumina (ILMN) also found pocket pivot support at its 50-dma. Earnings and sales are accelerating, pretax margin 25.1%, group rank 79.

Pandora Media (P) had a pocket pivot on a big-volume outside reversal to the upside as it tracks sideways along its 10, 20, and 50-dmas.

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