Market Lab Report - Premarket Pulse 1/25/16
Major averages rose Friday on lower volume. A bounce was due given the spike in the put-call ratio a few days prior plus the oversold situation, but its sustainability remains in question given the state of the global economy. Peak-to-trough, the S&P 500 fell -15.1% and the NASDAQ Composite -17.5%. A rally in oil stocks, thanks to a bounce in beaten-down crude oil prices, helped bolster the rally, while utilities chimed in with their own group strength. This argues for a more defensive posture by investors, despite the sharp market bounce off last Tuesday's intraday lows.
After last week's two day bounce in oil and junk bonds, both are heading lower once again as the downtrends remain intact. As a consequence, futures are down almost half a percent at the time of this writing. Cash remains king.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.