Major averages rallied on mixed volume on news that the second estimate of second quarter GDP pointed to an expansion of 3.0% vs est 2.7%. Further, the ADP number also came in ahead of estimates at 237,000 vs 180,000. The market seems to prefer stronger economic reports even if it means another rate hike before the end of 2017. Futures are up about 0.2% at the time of this writing though had a muted reaction to the batch of economic data released this morning. Personal income, core PCE Price Index, and weekly initial jobless claims all claim in roughly close to expectations.
Focus List Notes:
EA was added to the list last night after posting a pocket pivot breakout. This is a simple breakout buy point using the top of the base at 120.25 or the 10-dma as your selling guides.
VRTX was also added to the list last night after posting a roundabout type of pocket pivot. The stock has been building a base since gapping up in mid-July on positive product news. The stock has posted four pocket pivots over the past two weeks as it has been slowly "percolating. In this case the 10-dma can be used as a tight selling guide.
TSLA is sitting on top of its 50-dma with volume declining, which looks more positive than negative. This only comes into play as a short-sale IF and only IF it breaks below the 50-dma in conjunction with the current market rally reversing course. Otherwise, it is possible to view TSLA as a long here as it appears to be tightening up, using the 50-dma as a selling guide.
Market Lab Report - Premarket Pulse 8/31/17
|Published:||31 Aug 2017 09:02 ET|
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