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MLR - PMP 11/22/13

Major market averages rose on mixed volume yesterday as they recovered from three prior down days. The market had two bullish events yesterday that favor continued quantitative easing. The producer price index rose 0.3% in October, the lowest reading in four years. Low inflation gives the Fed more room for prolonged easing. The Senate panel also approved Janet Yellen's nomination to head the Federal Reserve. Yellen is associated with easy-money policies so is expected to continue Bernanke's program of QE that began in 2009 at similarly aggressive and prolonged levels.

Illumina (ILMN) had a pocket pivot yesterday. This comes after a gap up on a strong earnings report last month. While sales have somewhat accelerated, earnings have been relatively tepid so this stock may continue its slower ascent. Position size accordingly.

Big semiconductor stock Micron Technology (MU) also had a pocket pivot yesterday. MU has had strongly accelerating sales and earnings. It has, however, violated its 50-dma once in recent history. As well, the stock tends to be a slow, big-cap name, so position size accordingly.

Splunk (SPLK) is set to gap up this morning after a strong earnings report after-hours yesterday. Earnings are just turning positive. SPLK is the 'Google' of the business world. It is a search engine and analytic software program for a company’s IT data. It tracks customer behavior, user transactions, security threats, and more, and uses a company's IT data to help the decision making process. It holds agreements with a number of major companies. We have reported on SPLK in past reports.

Pandora Media (P) announced earnings yesterday and is trading up about a point pre-open. The stock had a pocket pivot breakout four days ago and since has traded back down to its 10-day moving average. However, positive action today keeps the stock in play as a pocket pivot breakout with the idea that it will continue to hold above its 10-day line.

Pocket pivot and buyable gap-ups have had an uneven record of success over recent days, so investors should keep their stops in mind and act quickly if a particular pocket pivot or buyable gap-up fails.

This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2020 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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