TGIF I would suppose, right? Markets again are seeing follow through off yesterday's rally into the close after a mild pullback this week and so it appears on the surface, all systems go. We suggested in Wednesday's edition two things that have proven themselves out over the last couple of days. First, there was some underlying short-term strength building, which was evident in yesterday's move and this morning's follow through. And, that the market may want to pull back before heading higher and we got that that too, albeit modestly.
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Additionally, we also said yesterday all eyes were on Greece and that hasn't changed from a perception standpoint, but the reality is until the NDX breaks convincingly above 2600 or breaks below 2444, anything can happen and we're standing pat on that point.
The media today is leading everyone to believe that the market is cheering over Greece's anticipated positive elections' outcome, but I wouldn't be so quick to run out and pick up some index call options or put your life savings into your favorite large or small cap basket of stocks. Even the world's largest central banks have communicated they're ready to save the day, but that news is a little disturbing to us. Since when is it OK to fail? We're living in different times, that's for sure.
Bottom line is let's keep a close eye on the technicals for now. We'll take the strength we're seeing right now, but we want you to know you probably shouldn't get overly excited just yet. As a matter of fact, today's move may very well be just short covering in the major indexes since short sellers have made great money over the last few months and they don't want to be caught wrong come next week. A counter move today to what will happen next week could be in the cards.
I suspect Monday is going to be a media hay day, so let's keep things in perspective and not buy into what they're telling us until we see proof in the pudding.
In other news, four out of five of our featured stocks are doing well for the time being. We'll take it. DMD's CFO is being replaced but more importantly, on the news of his resignation, he reaffirmed guidance for the quarter and the year, so shares of DMD have popped very nicely over the last couple of day and if you jumped in on the day we suggested the idea, the stock at its high, has already yielded almost 10%.
Another featured stock of ours worth noting today is VRML. Shares of our suggested entry into VRML appear to be on the move again allowing us to have a second win in the stock in almost a month. The Company reported this morning that results of their recent Peripheral Artery Disease (PAD) multi-marker intended use study was presented this week at the Society for Vascular Medicine's 23rd Annual Scientific Sessions, in Minneapolis, MN. The meeting hosts the nation's leading vascular medicine specialists, and includes sessions on PAD guidelines, policy trends, and advances in the diagnosis and treatment of vascular diseases.
The poster is authored by Professor of Medicine and Associate Director of Stanford Cardiovascular Institute Dr. John Cooke, together with colleagues at the University of Colorado and is entitled "Results of a Biomarker Screen to Identify Peripheral Artery Disease." It reported the results of a multi-center clinical study involving 1,025 subjects, prospectively enrolled from the PAD at-risk population of subjects aged 70 or older, and diabetics and smokers 50 or older.
Different multi-marker algorithms were evaluated in patients with or without PAD, in comparison with the Framingham Risk Score (FRS). The multi-marker models were also assessed for their ability to identify PAD in patients below the high-risk FRS cutoff. The best model demonstrated a c-statistic of 0.73 and more important, identified 17 of 20 (85%) of patients missed by the FRS high-risk cutoff.
"Since one in every 20 Americans over the age of 50 has PAD(1), this study suggests the possibility for a simple and practical way to screen at-risk patients," said Dr. Cooke. "By detecting undiagnosed or asymptomatic PAD, primary care physicians can intervene earlier and improve the health and prognosis for their patients. We are truly excited at the confirmation our biomarker research achieved in this large group of at-risk subjects, and look forward to advancing our program."
It appears the market is loving the news as shares of VRML continue to trade higher today following the positive momentum of the stock over the last three days.
That's it for today. I have a strong feeling next week is going to be a big week for the market in terms of where it wants to go in the weeks and potentially months ahead, so stay tuned and have an excellent weekend.