Major averages finished mixed yesterday on higher but below average volume. The NASDAQ Composite closed above 5000 as it makes another attempt at definitively breaking through this resistance level for the fourth time. The market's internals in the form of leading stocks bodes well for the fourth time being the charm, absent, of course, any unexpected news announcements in this event driven market environment.
A good number of actionable leading names on the basis of our proprietary fundamental and technical requirements appeared in the form of pocket pivots and a buyable gap up:
Criteo (CRTO) had a pocket pivot though it had a weak close in the lower half of its trading range. We reported on CRTO's prior pocket pivot on April 13.
Airline Jet Blue JBLU) - Earnings are accelerating, group rank 34. The price of oil is trying to find a floor but nothing yet definitive.
Fiber optic network company Infineon (INFN) had a pocket pivot on a strong earnings report. Earnings are skyrocketing last 5 quarters after being in the red for the most part, institutional sponsorship has grown the last 5 quarters, group rank 24. INFN announced favorable earnings yesterday after the close.
Financial services company Credit Acceptance Corp. (CACC) - earnings are accelerating, pretax margin 57.8%, ROE 37.4%, group rank 27.
Pharmaceutical company Mallinckrodt (MNK) had a pocket pivot off its 50dma. Earnings and sales are skyrocketing, institutional sponsorship has increased every quarter since the company went public 7 quarters ago, group rank 2.
Network security company CyberArk Software (CYBR) had a pocket pivot on gap-up move. Caution is warranted here since this is a fairly sharp move off its lows. Still, earnings and sales are skyrocketing, group rank 7.
Network security company Palo Alto Networks (PANW) had a pocket pivot breakout. Earnings and sales are accelerating, group rank 7.
While the two computer security companies above had pocket pivots, Fortinet (FTNT) had a buyable gap up after a positive earnings report Monday after the close, closing midbar. While earnings have been sluggish, sales have accelerated, and institutional sponsorship has grown over the last 5 quarters.