Market Lab Report – Premarket Pulse 11/3/15

By | November 3, 2015

Scalper1 News

Major averages were up yesterday on lower volume. Once again, they are for the most part approaching all time highs, while the NASDAQ 100 hit a new 15-year high, underscoring the narrow, big-stock leadership in this current environment. The question is whether the indexes will once again resume their trendless ways as they have for most of this year each time they were at or near new highs. Easy money has pushed markets higher since 2009 but it seems a QE-related exhaustion took effect this year as the sloppy uptrend in US markets stalled out. Nevertheless, stock opportunities continue to present themselves but one must be nimble in taking profits in context with the stock’s chart and general market, and of course, quickly cutting any losses. Telecom infrastructure company Dycom (DY) had a pocket pivot. Earnings are skyrocketing, sales are accelerating, group rank 11. Despite several pocket pivots in the stock over recent weeks, it has remained in a flat base as earnings approach later this month. Cosmetic retailer Helen of Troy (HELE) had a pocket pivot. HELE gapped higher on its prior earnings report. It has since traded sideways and is just breaking out of its consolidation. Group rank 32. Cruise line company Norwegian Cruise Lines (NCLH) had a pocket pivot. Earnings and sales are accelerating, group rank 55. Financial software solutions company SS&C Technologies Holdings (SSNC) had a pocket pivot. Sales are strongly accelerating, pretax margin 37.2%, group rank 31. Tesla Motors (TSLA), which we have initiated as a short-sale twice since August, leading to substantial downside each time it failed at its 50-day moving average, is set to announce earnings after the close. Those holding short positions in the stock should consider whether they wish to play “earnings roulette” or bank their profits and wait to see where the stock goes following the report. Otherwise, we maintain our downside target of $180, notwithstanding any rallies that may occur between now and then. Scalper1 News

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