Harry Peterson
0
All posts from Harry Peterson
Harry Peterson in Investing & more!,

The Nasdaq is doing the most bullish thing a market can do

With the Nasdaq Composite clocking a nine-day winning streak and the speculative growth-stock glamours showing scant sign of fatigue, upward revaluation is contemplated.

Of import, the Naz, a growth-oriented benchmark, has outperformed the market in nine of the past 10 sessions.

Chart created using TradeStation. ©TradeStation Technologies, 2001-2015. All rights reserved.

Within the list, the biotechs remain firmly in control of the leadership reins, as the chart below illustrates. Those that come out of bases do so on respectable volume, the mother's milk of a healthy bull market.

Chart created using TradeStation. ©TradeStation Technologies, 2001-2015. All rights reserved.

Among the names, Depomed DEPO, -0.84% was discussed in Thursday's column("While the 20.51 high could be used as a pivot for a standard breakout entrance, the preference here would be to allow price to form a handle or slight pullback."). On Monday, the specialist in treatments for pain and central-nervous-system disorders barely cleared the top of its base on volume that was 137% above its average daily volume. Monday's after-hours earnings release suggest a Tuesday gap opening.

Regardless of what transpires Tuesday, this is an actor worth following, and for a few reasons:

  • The Street looks for earnings growth of 50%/133% in 2015 and 2016, respectively
  • The stock is under extreme accumulation (institutional buying)
  • DEPO shows high price strength relative to the average stock, ranked in the 97th percentile over the past year

Chart created using MarketSmith. ©2015 MarketSmith Incorporated. All rights reserved.

Apple AAPL, +0.36% was discussed in the Feb. 3 column ("AAPL offers a potential breakout entrance above Friday's high of 120.00."). Price went out Monday at 133.00. Since this is more than 5%-7% above the pivot of 120, it is considered to be materially extended, and a medium-term speculator should not chase it at this level.

Chart created using MarketSmith. ©2015 MarketSmith Incorporated. All rights reserved.

http://www.marketwatch.com/story/the-nasdaq-is-doing-the-mos...