Major averages rose yesterday on higher volume as the central bank easy-money script continues to play out. Overall the action remains bullish. Oil rose past $40 a barrel. The correlation between oil and the stock market since the start of the year has been pronounced.
A couple of new pocket pivots arose though much of the rally has been from junk-off-bottom and defensive names so buying on pullbacks and keeping stops tight should be a standard approach in helping to keep risk to a minimum.
Internet-based IT software maker Ebix (EBIX) - pretax margin 32.6%, accelerating earnings. Stock made a strong move after its most recent earnings report. It has had a constructive, low volume pullback.
Building products manufacturer Universal Forest Products (UFPI) - earnings are strongly accelerating, institutional sponsorship has grown over the past 4 quarters, group rank 6. This is a pocket pivot breakout so can be bought on a constructive pullback closer to its 10dma.
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