Market Lab Report - Premarket Pulse 5/13/16
Major averages finished yesterday flat to lower on higher volume. The S&P 500 bounced off its 50-day moving average closing mid-bar. The NASDAQ Composite, however, continues to languish beneath its 50-day moving average.
The markets sold off a couple hours into the session after hawkish commentary from two FOMC members, saying that recent inflation data was encouraging and that the market is underestimating the pace of rate hikes. Nevertheless, markets later staged their usual QE environment rebound and moved back to the upside before selling off into the close again.
Futures are still trading lower though they rallied mildly on April producer prices which increased 0.2% vs. an expected 0.3% while core producer prices came in higher by 0.1% in-line with consensus.
A number of big-stock NASDAQ names continued to sell off yesterday, including those mentioned in recent Short-Sale Set-up reports such as NFLX, AAPL (lower low) and TSLA (also a lower low). MSFT remains in a position just above its 200-day moving average but just below its 20-day moving average where it could be in a shortable position using the 20-day line as a guide for an upside stop.
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.