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MLR - PMP 3-3-15

Major averages rose yesterday on lower volume, continuing their uptrend. The NASDAQ Composite hit 5000 for the first time since the year 2000 when it peaked at 5132. Given today's close of 5008, this puts it just 2.5% from all-time highs.

We observed a good number of quality pocket pivots in yesterday's trade:

Paint store retailer SHW had a pocket pivot. It has obeyed its 20dma since October 2014. Earnings are accelerating, group rank 32.

Human resources outsourcing company TNET - earnings are accelerating, institutional sales have increased since the company went public 3 quarters ago, group rank 11.

Drive-in fast food restaurant franchiser SONC - earnings and sales are accelerating, ROE 67.7%, group rank 2.

Semiconductor IDTI - sales are accelerating, group rank 17. IDTI had big volume up days on strong earnings reports over the last six such reports, meaning it has had favorable earnings reports six quarters in a row.

Psychiatric service provider ACHC - earnings are accelerating, group rank 35.

LCI - we originally reported on LCI on Feb 5 when it had a buyable gap up on a strong earnings report.

JAZZ had another pocket pivot though closed midbar, not the strongest of closes especially given how the major averages closed near their intraday peaks. We reported on JAZZ three trading days ago after it had a pocket pivot on a strong earnings report. It then retraced for two days on lower volume. If one reduced or sold their position, Monday offered a second chance.

Network security company PANW - earnings are accelerating, group rank 4.

Medical device maker ABMD - earnings are skyrocketing, sales are accelerating, group rank 15.

Internet network solutions company AKAM - earnings have been very stable and reaccelerating, pretax margin 33.3%, group rank 35.
Consumer high fidelity electronics maker HAR - earnings are accelerating, group rank 59.
Automotive parts retailer ORLY - earnings are accelerating, ROE 39.1%, group rank 44. ORLY gapped up on its last earnings report. ORLY trades very tightly with small drawdowns which mitigates risk.

Semiconductor TSRA - earnings are accelerating, pretax margin 67%, ROE 27%, group rank 16. TSRA had a big volume down day on an earnings report that was perceived to be weak, but redeemed itself in Monday's trading.

Notice how each stock has its own specific risk/reward attributes in terms of price movement. Each investor must decide which stocks best fit their risk tolerance profiles then position size according to what suits them best. If one takes on too big a position, one is liable to mishandle the trade by selling too soon or selling too late.

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. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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