Major averages had an upside reversal day to close higher on mixed volume after a strong employment report. The report at first pushed markets lower as it moved the Fed closer to hiking rates, but as we stated in our PMP on 4/1/16, Fed Chair Yellen recently acknowledged that global growth is an important factor with respect to any rate hikes as a premature hike could further derail the already fragile global economy. So despite a strong employment report, Yellen's dovish stance continues to have a bullish impact as it ultimately postpones any rate hikes as long as global growth remains stagnant.
Website hosting company GoDaddy (GDDY) had an upside reversal pocket pivot breakout off its handle. GDDY is a leader in its space. Institutional sponsorship has grown in every quarter since the company went public 3 quarters ago, group rank 84..
Advanced surgical system company Intuitive Surgical (ISRG) had an upside reversal pocket pivot, closing at new highs. Pretax margin 40.4%, group rank 58.
Upside reversals on higher volume are strong patterns, thus often directly precede higher prices. That said, this bullish action needs to be weighed against buying stocks on weakness closer to their respective moving averages since such stocks may not trade all the way down to such levels.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.