The major market averages rose yesterday on higher volume as the S&P 500 and NASDAQ Composite made new 13-year highs. The indexes sold off slightly into the close, giving up some of their gains on the day, but this is understandable given that they can encounter a little selling as they move into new high ground. The market uptrend remains intact as biotechs continue to lead the way with stocks such as REGN, ILMN, ALXN, BIIB, RGEN, JAZZ, ENDP, and SGEN at or near new highs. This strong action in the #2 ranked industry group has been accompanied by strong action in a broadening number of leaders, including "big stocks" like FB, TSLA, and NFLX.
Netflix (NFLX) had a pocket pivot yesterday as it moves up and off of its 10-day moving average, following FB's pocket pivot off of its own 10-day moving average last week.
This morning Tesla Motors (TSLA) is gapping up further after Morgan Stanley raised its price target on the stock to $320, following up on last week's buyable gap-up following its strong earnings report. TSLA recent breakout from a nearly five-month base looks a lot like General Motor's (GM) breakout in March 1915, something we discussed last June in an article we wrote for Forbes.com which now seems quite prophetic: http://www.forbes.com/sites/greatspeculations/2013/06/03/tesla-stock-today-looking-a-lot-like-general-motors-in-1915/
Network security firm Palo Alto Networks (PANW) had a buyable gap up yesterday following a strong earnings report. Group rank #4 and strong earnings and sales.