Gil here. I'm taking a bigger role writing this every morning and I've been going with the old format...so far. However, if this is really a "Pre-Market Pulse" report, why does it mostly just rehash what happened yesterday? That would make it more of a post-market pulse report from yesterday, wouldn't it? So, herewith a little spin from the usual stale approach. I'm not sure if I'll be able to do this every morning, but I'll give it a shot this morning. If you like it let us know.
So, here's the pre-market "pulse" as I see it. Futures are up big after two big up days. No surprise there. Somebody was obviously beating on the overnight "goose the futures" button. Nothing new there. A lot of stocks are extended here so I wouldn't be surprised if some pulled back a little bit in normal reaction moves. As Jesse Livermore used to say, "Action, reaction, action, reaction." I also wouldn't be surprised if they all just kept going higher. Dow futures indicate that we will likely hit 25,000 this morning near the open.
Previously Reported Names:
Kennametal (KMT), which we first reported on as a pocket pivot down near its 10-dma about five weeks ago, is trying to break out of a cup-with-handle type of pattern. Earnings are expected at the end of the month.
Navistar (NAV) still looks okay as it sits along its 10-dma. That was a BGU that failed, but then set up again as a gap-fill which we also discussed as a secondary entry point.
Nuvasive (NUVA) posted a pocket pivot two days ago and pulled in slightly yesterday on lighter voluime. That was discussed in a prior Focus List Review Report, along with Exelexis (EXEL), which has gone a fair bit higher recently. NUVA is still in a buyable position, however, with earnings expected during the first week of February.
Stitch Fix (SFIX) had an amazingly strong flag breakout last week that then fizzled badly. Ouch. One reason why I hate buying these types of "strong" breakouts. Now it's dribbled back into its 20-dma with volume drying up. Maybe a place to take a lower-risk shot???
Roku (ROKU) posted a pocket pivot yesterday at the 10-dma but was downgraded today, taking it closer to the 10-dma. One name I've had my eye on over the past couple of months, as readers of the VooDoo Report know. Does this set up a buyable pullback? We'll see...
Focus List Notes:
Caterpillar (CAT) found support at its 10-dma line - this puts it in position for an add at the 10-dma, with the idea of using the 10-dma or the 20-dema as a stop for this portion of your position or the entire thing. If the market keeps going up, I have hard time thinking CAT is going to blow up, despite getting a bit extended after a long run that started in September.
Facebook (FB) followed through on Tuesday's big pocket pivot up through the 50-dma, and then broke out yesterday on light volume. Technically, this is one for base-breakout buyers, fools they may be, although the the light volume would no doubt cause many to shun this. Personally, I think the
Market Lab Report - Premarket Pulse for Thursday Morning, January 4, 2018`
|Published:||4 Jan 2018 09:05 ET|
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