Major averages rose yesterday on lower volume as the major market indexes moved further above their 50-day moving averages. The straight down, straight up market action is characteristic of this news driven, QE-manipulated market. Nevertheless, a number of stocks have been quite profitable this year, and yesterday's screens yielded a number of actionable names.
System-on-a-chip semiconductor company Ambarella (AMBA) had a pocket pivot yesterday. Earnings and sales are skyrocketing, pretax margin 31%, ROE 32.7%, group rank 27. AMBA proved very profitable during its prior actionable buy points (see archives). It then had a very steep correction but only after it had what appeared to be an intermediate term climax top. Thus, the current pocket pivot could end up working should the rally in AMBA still have legs. Note that due to the steepness of the prior correction, some backing and filling could occur so buying AMBA on constructive pullbacks may work better than buying strength.
Biotech antitumor agent company Ziopharm (ZIOP) had a pocket pivot. Earnings are negative and sales nearly zero as this is a development stage company with a number of drugs in its pipeline. Group rank 4.
IT service provider Globant (GLOB) had a pocket pivot yesterday that included a high volume upside reversal. Earnings are accelerating, ROE 27.6%, institutional sponsorship has grown in all three quarters since the company went public, group rank 40.
Biotech supportive care maker Insys (INSY) had an upside reversal pocket pivot yesterday. Earnings and sales are strongly accelerating, pretax margin 35.8%, ROE 64.2%, group rank 4.
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