Major averages fell Friday on mixed, below average volume to finish roughly midbar. The S&P 500 has been unable to break above its 50-day moving average while the NASDAQ Composite struggles to make new highs, a situation all too common for the major indices since 2015.
The market is gapping higher by more than half a percent after the second debate, though the market has been unable to make any meaningful moves in either direction as it walks a tightrope regarding whether central banks such as the Federal Reserve and European Central Bank are moving toward tighter money policies, ie, less QE.
Friday's jobs report suggested some weakness which reduced the 64% odds of a rate hike this December to 60% though these odds fluctuated somewhat after the report. There remains much uncertainty which markets dislike. The falling price of precious metals while bond yields rise suggests the market believes interest rate tightening will come sooner than later, though any rate hikes will probably be done after the election.
ACIA and TWLO have been two of the top leaders on a technical and fundamental basis in recent months. Both are near supportive moving averages, the 50-day and 20-day, respectively. While both are fairly obvious to market participants at this point, both should be monitored closely.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (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. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
