Wednesday, February 12, 2014

Quiet Pause Healthy For Rally

MARKET UPDATE

After almost five straight up days, the market finally took a well needed breather on mixed volume. With no real market moving news today, a quiet pause is healthy bull market behavior after a strong bounce off the two hundred day moving average and two accumulation days in a week.

Ideally the market stays quiet over the next few days to allow leading growth stocks time to digest recent gains and tighten up new setups. The major snow storm headed for New York City tonight might just lend a helping hand.



LEADING GROWTH STOCK ANALYSIS

Leading growth continued their recent bullish action. Sanchez Energy (SN) broke out of a cup shaped base, NPS Pharmaceutical (NPSP) broke out of a cup with high handle base, Priceline.com (PCLN) broke out of a flat base pullback to the fifty day moving average, Amira Nature Foods (ANFI) and Jazz Pharmaceuticals (JAZZ) broke out from pullbacks to their twenty day moving averages, while recent breakout's Lannett Co. (LCI) and Questcor Pharmaceuticals (QCOR) added on to recent breakouts, all on heavy above average volume.

THE SETUPS

Taser International (TASR) has regained its lost luster with a new body camera for police forces. The device promises to cut down police brutality accusations by filming everything the officer does and see. After more then doubling from its August 2013 cup and handle breakout, the stock has formed a flat base next to flat base. A breakout above the downtrend line around $17 sets the stock up for a breakout above the base peak at $18.88. Earning are expected February 26th.


NQ Mobile (NQ) has formed a quirky cup and handle base after tanking over 60% on October 24th on a bearish report from Muddy Waters. The fundamentals remain impressive as long as the Muddy Water story does not turn out to be true. The technicals have shown strong daily and weekly accumulation ever since that atrocious week. A breakout above the handle high of $18.50 could set the stock up for a run into fifty two week high territory. Earnings are expected around March 6th.


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