MLR - PMP 9/5/13
The major market averages rose on mixed volume as NASDAQ and small-cap stocks led the way. Bio-tech and technology stocks were areas of notable strength. So far the NASDAQ has found support along its 50-day moving average over the last few days while the S&P 500 remains relatively weak as it is still under its 50-day moving average. The question in the minds of investors is whether the Federal Reserve will begin to taper quantitative easing when it meets later this month as a U.S. strike on Syria appears to be put on the backburner in the short term as Congress spends several days debating the issue. Adding to the excitement will be this Friday's Bureau of Labor Statistics jobs report. The ADP jobs report this morning indicated 176,000 new jobs vs. expectations of 180,000.
Drug manufacturer Actavis (ACT) had a pocket pivot in Tuesday's trade and is still actionable. Earnings and sales have accelerated. This stock found decent support at its 50-day moving average the one time it tested it since its breakout in March 2013 and has since moved to new highs.
Both Yelp (YELP) and Invensense (INVN) had pocket pivots yesterday. YELP appears to have broken out of a high, tight flag formation on its weekly chart and is following through with more upside this morning pre-open. Conversely, INVN this morning looks to be opening to the downside, which seems typical of its nature to show strength one day that does not follow-through with further upside. We have reported on both YELP and INVN frequently in prior reports.Auto and related stocks were strong yesterday. Asbury Automotive (ABG), a thin name, had a pocket pivot yesterday, as did Ford (F) as it tries to come up off the lows of its current base.
Portfolio Recovery Group (PRAA) had a pocket pivot yesterday. Annual pre-tax margins are at 34.9%, earnings haved been growing steadily in the mid-30% range, and its group rank is #42, strong earnings. It too gapped up on a strong earnings report in July.
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.