Major averages closed higher Friday on light holiday volume trading that barely exceeded Wednesday's levels despite it being a full trading day. Biotechs got hammered this past week as Express Scripts (ESRX) preferred a less expensive drug offering from established maker Abbvie (ABBV) over heavyweight Gilead (GILD). Oil prices look to continue their downtrend as they fell to $55/barrel. Leading stocks continue to lag as feeble breakouts have been the siren song. Nevertheless, quantitative easing has been a formidable opponent as the major averages push reluctantly higher. Also, we are going into the third year of a president's term. Going back nearly a century, only one such year showed a loss in the major averages. That said, markets can do much in a year's time, so be prepared for plenty of opportunities on both the short and long side of the market.
Futures are down this morning after Greek markets plunged -10% overnight after Greek politicians were unable to elect a president in a key vote this morning. The vote could bring the left-wing Syriza party to power, jeopardizing an international bailout.
Virgin America (VA) gave members a nice Christmas present last week by launching over 26% from its prior pocket pivot at around the 35 price level and the 10-day moving average in four days. We reported on VA when it issued its pocket pivot at that price level, and it demonstrates the clear advantage one has buying pocket pivots in this market rather than waiting for standard base breakouts once the general market turns. While others engage in the issuance of meaningless labels regarding the general market trend, focusing on the concrete and actionable evidence provided by individual stocks in real-time is the hallmark of our approach in this market and one that has proven effective.