MLR - Pre-Market Pulse for Tuesday, March 12, 2013
General markets rose again in baby-step fashion to higher-highs on mixed volume. The NYSE-based indexes traded lighter volume while the NASDAQ Composite traded only slightly higher volume. Futures are down this morning while precious metals, gold and silver, are moving over 1% higher at the time of this writing, with silver taking the lead.
Magnachip Semiconductor (MX) had a pocket pivot (see www.selfishinvesting.com/pocket-pivot for more information) yesterday after previously failing on a breakout attempt. However, the stock continues to violate its 50-day moving average, thus is less attractive as a buy. It is also a small cap verging on micro-cap status and thus carries more risk.
Michael Kors Holdings (KORS) tumbled through its 50-day moving average on big volume after moving below the low of its gap up day a few weeks ago. While earnings and sales continue to be robust, investors should heed the technical action first as KORS is now starting to develop into a base-failure type short-sale set-up, but this will take a little more time to develop before it becomes actionable.
As the market has continued to move higher we have not seen much in the way of actionable buy points showing up in leading stocks. With the indexes in an extended position, and the NYSE-based indexes up seven days in a row, the market is obviously vulnerable to a pullback at any time. Whether such a pullback develops into something more severe is still subject to confirming evidence, but the contrarian movement this morning in precious metals is an interesting development and bears watching.
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