MLR - PMP 1/20/15

Published : January 20 2015 at 8:47 ET

Major averages bounced on unimpressive volume despite triple witching options expiration which normally should significantly boost volume. This was the third time since December that the NASDAQ Composite and S&P 500 bounced off logical support areas. US Treasury yields continue to fall despite no quantitative easing in the US because US Treasury bonds are more attractive at present than foreign Treasurys which currently offer a negative rate of return. US Treasurys also represent a flight to quality fear trade. Thus all the buying of US Treasurys pushes the price higher and the yield lower.

Chinese stocks had their worst day in over six years on Monday with the Shanghai falling more than 7% as Chinese regulators moved to crackdown on excessive margin trading. European markets resisted the Chinese slide and rallied. Futures are up sharply this morning as the promise of more stimulus from China and the European Central Banks pending announcement of expanding QE bond-buying later this week.

With all the rip-tide action in the markets as of late, it is even more essential to keep your stops tight and take your gains when you have them, whether on the long or short side.

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.