MLR - Premarket Pulse October 21, 2013
Major averages rose on mixed volume despite the options expiration day which usually boosts volume. Leading technology stocks have led the way with Amazon (AMZN), Facebook (FB), Yelp (YELP), and Google (GOOG) all gapping higher, as well as other leading names such as Netflix (NFLX) hitting new highs and Finisar (FNSR) trading enough volume for a pocket pivot as we pointed out would be likely in a report we sent out shortly after Friday's open.
While many will point out that the market is currently "overbought," investors should keep in mind that an overbought market can get a lot more overbought before it has any kind of pullback. Some of the most powerful stock market moves have arisen out of "overbought" positions, and so we would not engage in trying to slap a label on the market that would then govern our actions. Watch your stocks!
With the recent government shut down, important economic reports were delayed. This is perceived as bullish as some say the Federal Reserve will find it difficult to start tapering without much data to study. The unemployment report for September will be released Tuesday before the market's open.
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