Major indexes churned around on higher volume, mostly in confused reaction to President Trump's decision to withdraw from the Iran nuclear agreement. However, overall the indexes showed support off the intraday lows, closing near the highs of their daily trading ranges. The higher volume therefore hints at supporting type of action.
Futures are up as a rally in oil prices helped lift US-listed energy companies. Trump’s decision means the US will likely reimpose sanctions on Iran which will curb the country’s oil exports and tighten global oil supply.
Focus List Notes:
This has been a trendless period for the market, with most stocks moving back and forth within price ranges over the past several months. We have stayed with what we have felt are some of the best quality names, despite the lack of strong upside trends. All of these names continue to act well, and with the indexes perhaps setting up again, could move higher in the coming days.
AMZN held tight yesterday as volume dried up to -49% below-average. The stock acts like it wants to revisit its recent highs.
BZUN is back near its base highs and is out of buying position. Keep in mind that earnings are expected next week.
FTNT pulled a nice comeback as it has held the recent post-earnings pullback to the 50-dma and continued higher yesterday on above-average volume. Pullbacks to the 10-dma would offer lower-risk entries from here.
NFLX held tight yesterday after a strong move on Monday as volume dried up to -60% below-average. The stock is also back at its prior breakout point, so is in a buyable position using the 10-dma as a selling guide. Pullbacks to the 10-dma would certainly offer lower-risk entry opportunities, if you can get 'em, but may not happen.
NVDA looks to be on the verge of a breakout, but with earnings expected this Thursday after the close, we would not be sticking our necks out here and buying shares at these levels.
SQ just missed posting a ten-day pocket pivot yesterday as it pushed up and off the 50-dma on strong volume. It has posted three five-day or ten-day pocket pivots over the past four days.
Market Lab Report - Pre-Market Pulse for Wednesday, May 9, 2018
|Published:||9 May 2018 08:27 ET|
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