Premarket futures are down as European stock markets extended losses due to confusion on whether Cyprus was asking for more money for its bailout program, which Cyprus later denied. The PPI was also down -0.6% which may imply deflationary pressures and could also be why gold and silver have been dropping.
On Thursday, general market averages were flat to slightly higher on mixed volume. The NASDAQ Composite has been lagging so far in 2013. The higher risk small-cap Russell 2000 has recently been lagging as investors take a more "risk off" stance given the market uncertainties.
This could be why slower names, such as McDonald's (MCD) have been outperforming in this environment as they often have shallower pullbacks such as MCD. Priceline.com (PCLN) is another such name. It broke out of a one-year base on Thursday. The last time PCLN broke out of a long base was in early 2012, after which it had a good move.
Equinix (EQIX) cleared its 50-dma and had it second pocket in two days yesterday. Earnings growth has accelerated to triple digit percentages, with the last two quarters up 190% and 177%.
Both PCLN and EQIX had prior gap ups, a bullish sign for the stocks. Overall a smattering of pocket pivots and breakouts have been occurring, but this still remains a difficult environment where normal growth stocks are not leading while the emphasis appears to be on what we might consider to be "QE stocks."
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