Market Lab Report - Premarket Pulse 5/28/15

Published:

28 May 2015 12:27 ET

Major averages rose yesterday on mixed volume with the NASDAQ Composite posting a close not seen since the year 2000, and is now just half a percent from its all-time high of 5132.50 achieved in March of 2000. Meanwhile, the small-cap Russell 2000 managed to closed above its 50-day moving average as and semiconductors roared ahead, also closing at levels not seen since year 2000.

Futures are currently under mild pressure as Chinese stocks fell the most in four months on Thursday after filings showed a major sovereign wealth fund reduced its stakes in the country's biggest state-owned banks for the first time. The Shanghai Composite Index sank -6.50%, but had risen over 50% year-to-date, so the decline should be viewed within the context of what has been a big bull market so far in 2015.

With the sideways market attempting another breakout, a number of actionable names are cropping up. This does not mean we are out of the woods yet, so position size with care.

Therapeutic drug maker RTRX had a buyable gap up. Sales are strongly accelerating, group rank 2.

Semiconductor SIMO had a pocket pivot/buyable gap up. Earnings and sales are strongly accelerating, pretax margin 25.9%, group rank 14.

Beauty haircare retailer ULTA had a pocket pivot off its 50dma after a tight sideways consolidation.

Biotech BMRN had a pocket pivot breakout. Group rank 2.

Fiber optic IC maker INFN had a pocket pivot off its 50dma. Earnings are skyrocketing, institutional sponsorship has grown last 4 quarters, group rank 6. This stock is trading midbar so wait closer to the close to see if it can finish in stronger fashion than where it is currently trading.

Semiconductor IPHI had a pocket pivot. Earnings and sales are skyrocketing, institutional sponsorship has grown last 7 quarters, group rank 14.

Telecom software maker BSFT had a pocket pivot after gapping up recent due to a strong earnings report. Earnings are hugely accelerating, sales are accelerating, pretax margin 19%, group rank 25.

Semiconductor IDTI had a pocket pivot off its 10dma. Earnings and sales are strongly accelerating, pretax margin 26%, group rank 14.

Psychiatric treatment facility provider ACHC had a pocket pivot off its 50dma. Earnings and sales are accelerating, institutional sponsorship has grown last 14 quarters, group rank 22.

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