Markets continued to rebound ahead of today's Fed meeting where they will decide whether or not to hike rates. CME FedWatch puts the odds of a hike at 81%. The bounce in the price of oil catalyzed yesterday's rally. The NASDAQ Compose closed near the low of its trading range while the S&P 500 closed roughly midbar. The day's volume on both indices came in lower expressing institutional uncertainty ahead of today's Fed announcement.
Electronic postage service Stamps.com (STMP) had a pocket pivot. It gapped higher on its prior earnings report then traded sideways until today when it made new highs. Earnings and sales are accelerating, pretax margin 28.1%, group rank 1.
Chinese developer of plasma-based drugs China Biologic Products (CBPO had a pocket pivot breakout. Pretax margin 52.4%, ROE 33.6%, institutional sponsorship has grown over the last 7 quarters, group rank 54.
Keep in mind our views on buying on constructive weakness instead of on strength in this type of market environment as your risk drops the closer your entry is to your sell stop.
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