Market Lab Report - Premarket Pulse 10/11/16
Major averages rose yesterday on lower volume, closing in the lower half of their respective trading ranges.
U.S. Treasury yields rallied to their highest levels since early June while precious metals are testing major support levels. The dollar also hit an 11-week high as investors upped their bets on the Federal Reserve raising US interest rates before the end of the year as doubts grew over Donald Trump's ability to win the US presidency.
"Trump is widely deemed to be dollar-negative, while a Clinton victory is regarded to be positive for the dollar. In the absence of a shock victory for Trump, the Federal Reserve will most likely raise interest rates in December, thanks to improving data in the US," said Forex.com analyst Fawad Razaqzada.
At 2:00 PM ET tomorrow, the Fed will release their latest FOMC meeting minutes. The Fed will probably wait until after the election to raise rates, but will there be another rate hike this year? CME FedWatch puts the odds at 70% when they meet in December, up from 66% last Friday.
Cloud networking software and hardware company Arista Networks (ANET) had a pocket pivot. It's a favorite of strongly performing Fidelity Contrafund's Will Danoff. ANET has responded well to its last several earnings reports. Indeed, earnings has been catching up with price. Pretax margin 27.8%, ROE 25.9%, group rank 42.
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.