Major averages closed down yesterday on volume that was flat to higher than Wednesday's volume. The Russell 2000 finally broke its 15-day winning streak, closing down 1.29% as it led to the downside. After a sharp upside run following the election, the indexes are in a position to pull back.
The second estimate of third quarter GDP came in at +3.2%, up from the 2.9% increase observed in the preliminary reading, and almost matching consensus of of 3.0%. The third quarter GDP Deflator was revised down to 1.4% from 1.5% while the consensus expected no change.
The important oil summit meeting will be taking place shortly. Concerns are that a deal will not be reached. Goldman Sachs says futures are pricing in a just 30% chance of a production-cut deal getting done. Others are putting the odds of success on Wednesday at less than that. Analysts say that if no deal is reached, it could spill over into equity markets. Oil is trading lower by 3%.
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. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.