Market Lab Report - Premarket Pulse 5/11/15
While the unemployment statistics are somewhat suspect, the number of people who entered the labor force in search of work also rose. Plus, institutional market psychology is key as it determines whether the big boys step up which pushes the markets higher. And institutional portfolio managers are always in a race to beat the major averages. So, one could argue in lemming-like fashion, portfolio managers follow the big money flows. Not that there is anything wrong with this strategy as long as a PM is quick to reverse course away from the herd at the right time, such as in early 2008 or March/April of 2000. Of course, most don't thus the majority fail to beat major benchmarks such as the S&P 500.
The latest employment figures push the odds in favor of the Federal Reserve raising interest rates in 2015 for the first time in nine years. The central bank has said it is data dependent, tying its decision to steady improvement in the labor market.
While we had a number of pocket pivots and buyable gap ups in recent days, keep in mind that the market may still be stuck in a trading range, though the true leaders will buck a general market trading range.
Mobileye (MBLY) announced earnings this morning pre-open, and is set to gap up slightly. We had previously reported on this as a buyable gap-up move three weeks ago
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.