Major averages finished mixed yesterday on higher volume. Both the NASDAQ Composite and Russell 2000 hit new highs while the S&P 500 and DJIA fell fractionally. The number of actionable leading stocks continues to join the uptrend as leaders overall have been performing well.
Avago Technologies (AVGO) finished its BGU on a strong note, closing near intraday highs while Qorvo (QRVO) and Super Micro Computer (SMCI) both continued higher after their recent pocket pivots we noted three days ago.
Tech juggernaut Apple (AAPL) had an upside reversal pocket pivot. Earnings and sales are strongly accelerating. The % gains in the most recent quarter are substantial especially given the size of the company. Pretax margin 29.3%, ROE 33.6%, group rank 54.
Two of the three big-stock social-networking companies had pocket pivots yesterday - Twitter (TWTR) and LinkedIn (LNKD.) Both had recent gap ups on strong earnings. Earnings for both companies are strongly accelerating. That said, LNKD's close today was relatively weak and TWTR had a gap down on a weak earnings report back in October. Meanwhile, Facebook (FB), which had a pocket pivot six days ago as we reported at that time, is attempting to break out from a short cup-with-handle formation.
This morning Splunk (SPLK) is set to gap up and out of a 15-week base after beating on earnings last night after the close. This likely will develop into a buyable gap-up and will be monitoring this once the market opens.