MLR - Premarket Pulse 11/4/13
Major averages tiptoed higher on lower volume. James Bullard of the Federal Reserve said the markets reacted sharply earlier this summer when the Fed suggested they might taper sometime later in the year. Bullard said this suggests the markets are connecting the first tapering with the first rate hike, even though the two policies are separate. Nevertheless, Bullard said the Fed needs either to convince markets that the two policy tools are distinct or "learn to live with the joint effects of tapering on both the pace of asset purchases and the perception of future policy rates."
FSLR had a buyable gap-up on Friday following a strong earnings report. While FSLR gapped down on its prior earnings report, it has constructively traced out the rest of its base since then, and Friday's gap up on earnings rectifies its prior gap down. Strong action in the solar stock group, currently ranked #1 among all industry groups, tilts the odds in its favor.
U.S. Silica Holdings (SLCA) had a pocket pivot Thursday. After pulling back slightly on Friday It is currently trading close to Thursday 's closing price. SLCA had managed to trend higher in early October even in the face of market weakness following several pocket pivots that we report on when the stock was in the mid-20 price area. The fracking space is one of great interest, and SLCA is a leader in this technology as a supplier of silica sand used in the fracking proceess. Keep in mind that SLCA is expected to report earnings on November 7th.
A number of solar names are gapping up in pre-open trade this morning, although it is not clear at this time whether any of them will constitute buyable gap-ups. We will apprise members accordingly.
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.