MLR - Premarket Pulse December 9, 2013

Published : December 9 2013 at 8:54 ET

The major market averages rallied sharply Friday following a strong Bureau of Labor Statistics jobs report. However, the rally came on lower volume. Leading stocks remain a mixed bag while the major averages continue their uptrends.

Big social-networking names LinkedIn (LNKD) and Facebook (FB) both had mini-buyable gap-up moves at the open Friday as they both gapped above their 50-day moving averages. However, only LNKD held up on the day as FB reversed at its 50-day line on slightly heavier volume. LNKD was up on an analyst upgrade based on the belief that LNKD will soon be launching its services in China. LNKD remains a leader in its space, although it has been base-building for the past several months. It's group rank is #4 while earnings and sales growth has remained strong. Leading technology stocks have been showing relatively more strength as of late, and FB could simply require more time to form the right side of a potential new base. In the meantime, we would need to see some constructive, bona fide buy points emerge along the lows of the base to help confirm that sufficiently to make the stock actionable on the long side.

Other stocks that are holding tight sideways and/or trying to round out the lows of recent consolidations and which should be watched here for possible pocket pivots include Illumina (ILMN), Chicago Bridge & Iron (CBI), Harman Industries (HAR), Vipshops (VIPS), and Sinclair Broadcasting (SBGI). Should any of these stocks become actionable, we would expect to issue real-time reports as appropriate.

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.