Morning Report – May 13, 2014

6:25 AM

The small cap indexes rose sharply yesterday as traders bought beaten down stocks in hopes of getting in on an early reversal.  Bottom fishing was prevalent in my list of small cap stocks having at least 50% institutional sponsorship.  The stocks below are from that list and gained a minimum of 10% yesterday, but most are well off of their 52 week highs even after yesterday’s large gains.  All of these stocks remain in downtrends.

The candle spreads were impressive for the indexes, and once again, most of the major indexes closed near high in of their daily range. The NASDAQ candle closed at 95.03% of its range, but on light volume.  The opening gap was short covering, but strong buying based on heavy volume did not materialize. Semiconductor stocks continued to be strong, and Biotech stocks had a strong bounce with the XBI up 3.5% on VERY light volume, 36.5% below its 50 day moving average volume. The XPH, the SPDR S&P Pharmaceutical ETF’s volume was a whopping -75% below its 50 day moving average volume.  The small cap indexes and the Utilities did trade above their 50 DMA volume, but volume was down dramatically for most of the indexes on a huge percentage up day.  Below are HGSI indexes which are market cap weighted and most shot up sharply on lighter volume. Read Full Report