Momenta Pharmaceuticals (MNTA) has a Bearish Chaikin Power Gauge Rating and has recently begun to lag the SPY. The OB / OS Indicator is moving lower after failing to reach an oversold position and Chaikin Money Flow has turned bearish. MNTA is below the long-term trend line and triggered a Relative Strength Breakdown Signal today.
The Chaikin Power Gauge Rating for MNTA is Bearish due to very weak earnings performance and poor financial metrics. MNTA’s earnings performance is very weak as a result of poor EPS growth over the past 3-5 years and worse than expected earnings in recent quarters.
Advancers: SKX (9%), AMD (7%), MPWR (5%), EW (4%), WPX (4%)
Decliners: INTC (13%), MRNA (4%), TSLA (4%), HST (4%), GPS (3%)
Market Commentary/Looking Ahead
US equities closed lower Thursday with S&P 500 breaking a four-day streak of gains. The growth sectors and themes remained under pressure. Staples, Financials and Utilities outperformed. Treasuries were mostly stronger with the back end of the curve leading. The dollar was weaker on the major crosses. Gold finished up 1.3%. WTI Crude settled down 2.0%. Initial claims ticked higher for the first time since April, sparking thoughts that the economic recovery may be losing momentum. At the same time, US / China relations have begun to simmer once again.
It may have been a false breakout in the SPY. The fund has pulled back after a push through resistance at the $325 mark. We have noted all week that being selective is the best strategy due to the overbought readings from our indicator and that remains the case on the final day of the week.. Our bullish view on the intermediate-term trend remains in place as long as support in the $300 – $310 range holds.
S&P futures are down 0.2% in Friday morning trading after Asian markets were weaker overnight with China down nearly 4%. Japan remained closed for holiday. European markets are under pressure as well. Treasuries are mostly weaker with more curve flattening. The dollar is soft on the yen cross but stronger vs the euro. Gold is little changed. WTI Crude is up 0.8%.