Major averages were roughly flat yesterday, not surprising after the recent steep gains needed to be digested. Markets have moved straight up from recent lows having anticipated an agreement would be reached, the debt ceiling raised, and the government reopened. Despite the averages barely budging, some leading stocks continued higher.
The U.S. economy added 148,000 jobs in September while the unemployment rate fell a notch to 7.2%. Economists expected an increase of 185,000 jobs in September and unemployment to remain steady at 7.3%. Futures rallied on the news. Of course, the percentage is over 10% if you factor in those who have given up looking for work. Bernanke knows this, so any tapering in the coming months may well be ceremonial to give the appearance of minding the store.
Employment gains in August were revised up to 193,000 from 169,000, but July's gain was trimmed to 89,000 from 104,000 to mark the smallest increase since mid-2012. The report was delayed by 3 weeks so might not offer a lot of clues because the delay may have caused businesses to hesitate before hiring. Nevertheless, quantitative easing is here to stay.
Tesla Motors (TSLA) is retesting its 50-day moving average. Germany is a small percentage of its market so the 50-day may serve as support once again. Should it violate its 50-day, which will require it to close below its 50-day then move below the low of that close, it will be the first time since its massive ascent that began earlier this year
Organovo Holdings (ONVO), creator and manufacturer of functional, three-dimensional human tissues for medical research and therapeutic applications, gapped up on news that it retained key liver functions in bioprinted tissues for up to 40 days, longer than one month. ONVO also demonstrated that its 3D Liver tissue can potentially have value in assessing toxicology problems in human liver over a long period, including sub-acute and multiple dose effects. We reported on ONVO's pocket pivot as well as its prior gap up. Friday's reversal action may have led you to sell part of your position, which is understandable. It is important to stay nimble and flexible when trading stocks, especially with the volatile ones.
Nuskin (NUS) gapped up on a strong earnings report. We have reported on NUS in prior reports including its clean pocket pivot on September 5 but the stock may be somewhat extended at this point. As always, buy within your risk tolerance limits.
Illumina (ILMN) gapped up after announcing earnings yesterday.
Apple (AAPL) broke out of a two month range yesterday on about average volume. Volume, however, was high enough to qualify as a pocket pivot range breakout, albeit a lower-quality one in our estimation.
Before the open, we sent timely emails on some of the aforementioned stocks as they were actionable.