X
Tired?
Unfocused?
Off your game?

Read our free Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
YES, SEND ME THE REPORT !
NO, I'M NOT INTERESTED
Your email will always remain private.

Market Lab Report - Premarket Pulse + Short-Sale Set Ups 12/6/16

Published : December 6 2016 at 9:27 ET

Market averages rallied yesterday on mixed volume, heavier on the S&P 500, with the S&P 500 closing in the lower half and the NASDAQ Composite in the upper half of their respective trading ranges. The small cap Russell 2000 and financials outperformed once again.

As the yield curve continues to steepen, the strong dollar puts a weight on larger cap tech stocks which are heavily globalized. This partially explains the lagging performance of the NASDAQ-100. Sector rotation into Trump-favored areas has also been a factor.

While the Trump rally has pushed the Dow Industrials into new highs, the question is whether the Fed has any room to hike rates in any meaningful manner without bursting the QE bubble. Meanwhile, the ECB meets this Thursday and is expected to keep their QE engine humming right along and may even press the accelerator.

The lack of global growth despite record low interest rates speaks volumes to the sovereign debt crisis in which the planet finds itself. As a growing number of notable investors and fund managers with outstanding long term track records have said, this cannot end well.

Over the weekend we mentioned that Qualcomm (QCOM) and Gigamon (GIMO) should both be watched for rallies back up into their 50-day moving averages as potentially shortable moves. GIMO is still well below its 50-day line, but yesterday QCOM rallied 2 cents beyond the 50-day line before backing down to close a little less than 1% below the line. This would still be in a shortable position, using the 50-day line plus another 1-3% additional upside "porosity" for a tight stop.


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. ©2017 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.