Major averages closed slightly down on mixed volume. Over the last 3 weeks, the general markets have climbed faster than earlier this year suggesting that the Fed's most recent incarnation of quantitative easing, QE3, is starting to take hold, resulting in a sharper angle of ascent similar to that created by QE1 and QE2.
Economic news was mixed as usual with first-time jobless claims better than expected, but retail chain store sales in April weaker than expected. Beyond the economics, the effects of QE continue to prop the markets, making any particularly negative news, whether economic, political, or international, have little more than a temporary effect.
Netflix (NFLX) had a pocket pivot in Thursday's trade as it recovers from an initially failed buyable gap-up. Earnings and sales have re-accelerated for this turnaround play., while institutional sponsorship has begun to come back into the stock over the most recently reported quarter. As well, NFLX's industry group rank is a strong #4. NFLX has had two prior gap ups on strong earnings. Both gap ups did not result in significant further upside for the stock as it spent most of the next three months following January's gap-up moving sideways and even violating its 50-day moving average, while April's gap-up technically failed as it moved below the intra-day low of the gap-up day of April 23. However, Thursday 's pocket pivot comes after relatively tight, constructive action and puts teh stock back into play as a long target.
Three D Systems (DDD) priced a 7.5 million share secondary offering at $40-a-share, and the stock is trading down to that level this morning pre-open. Investors might be alert to this as a potential buying opportunity on the basis of the stock's pocket pivot move on Wednesday. The 10-day moving average is currently at 39.81, providing a nearby reference for a selling guide should the stock falter.
Gold and silver are taking another hit today pre-open, but as we've discussed previously, the potential for paper metals to sell off even in the face of strong physical demand remains the paradox of the precious metals at this time. Thus there remains no actionable buy point in either silver or gold at this time.