The major market averages barely budged on light holiday trading. Barring any major news events, volume levels tend to be lower during this time of year. It is looking as if the majors will finish off the year in strong fashion as quantitative easing has remained on full bore since January 2 of the year, containing corrections to within roughly 5%. Since the Fed plans to keep rates low for an extended period, this bodes potentially well for a continuation of the uptrend barring any serious news event as we move into the New Year.
Valeant Pharmaceuticals (VRX) had a pocket pivot yesterday as it broke out of a fairly flat base. Group rank 8, sales are accelerating strongly, pretax margin 41%, ROE 36.9%.
We would be looking for strong leaders in 2013 to be supported today as the year comes to a close. Pre-open we note that Facebook (FB) is up over 1% after a three-day pullback that took the stock down to its 20-day exponential moving average. Bio-techs Biogen Idec (BIIB), Celgene (CELG), and Gilead Sciences (GILD) are moving tight sideways and look to be in constructive buy areas, while Workday (WDAY), which had a pocket pivot last week, remains tight within the handle area of a potential cup-with-handle base.
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