MLR - Premarket Pulse September 9, 2013

Published : September 9 2013 at 9:20 ET

Major averages closed about flat on Friday on higher volume. The BLS jobs number initially sent the market rallying before it sold off hard following comments from Russian President Vladimir Putin who stated that Russia would assist Syria if attacked. The sell-off was short-lived, however as the market stabilized and moved back to the upside before closing roughly flat on the day. The NASDAQ Composite is less than 1% away from new highs, the S&P 500 is just under its 50-day moving average, and a number of leading stocks have weathered the mild correction well including LinkedIn (LNKD), Facebook (FB), Yelp (YELP), Netflix (NFLX), and Tesla Motors (TSLA).

Futures are up this morning as Syrian action appears somewhat muddled as a result of rising opposition within the U.S. to such a strike.

Friday's weak employment report was perceived as bullish as it means tapering would come later than sooner. Most of the decline in unemployment is due to people giving up looking for work. If the number of people looking for work had not shrunk since 2009, the unemployment rate would be 10.4%, but as it stands, the employment participation rate for men is now at an all-time low, and this is figuring into a misleading unemployment rate. Fed governors are split on whether or not they should start tapering at their next meeting in September.

Mercadolibre (MELI) is a sloppy trader so its recent pocket pivots have not fared well. It appears to be rounding out its bottom, but given its price history, it could violate its 50-day moving average. We are less enamored with this stock when there are others acting in much more constructive fashion as we have reported to members over the past week.

Tesla Motors (TSLA) is trading down about 3% or so pre-open, but so far we do not see any specific news relating to the drop. There is, however, an article out this morning quoting AutoNation CEO Michael Jackson (yes, that's his name) as saying that the gas-powered car is here to stay and electric vehicles are still not favored by consumers thanks to their higher price tags and lack of infrastructure for charging them up. We would watch TSLA here as it pulls back into support near the 159 price level and its 20-day moving average, currently at 157.99, for a potential buying opportunity, with the idea that it should hold those support levels.

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