MLR - PMP 7/14/14

Published : July 14 2014 at 9:34 ET

Major market averages rose on lower volume Friday. The number of distribution days along with the hard selloff in leading stocks implies this correction may have a bit further to go before a QE-induced floor is found. In addition, bond yields may rise due to surging labor costs and sharply declining first quarter productivity. U.S. futures are up this morning as Asian and European markets continue their recovery from Thursday's gap-down move.

Investors should keep their stops tight on remaining long positions. With earnings season upon us market volatility could increase. In addition, holding stocks into earnings without a sufficient profit cushion is tantamount to playing "earnings roulette." Earnings season typically sees a number of gap moves either up or down in leading stocks, which brings into play the potential for buyable gap-up moves that can be bought into if the general market is able to snap out of this current pullback.

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.