Note, on occasion, when we have nothing new of note to say, we will not send out a Pre-Market Pulse report.
Major market averages reversed after a sharp intraday rally on higher volume that saw the Dow Jones Industrials push up over 300 points on the day. However, the reversal was swift and steep, with the Dow closing down -166.97 points, or -0.67%, while the S&P 500 and NASDAQ Composite Indexes also reversed into the red. The NASDAQ, in particular was sporting a hefty rally early in the day before its gains evaporated and the index closed down -16.08 points, or -0.22%.
Futures are trading higher after reports on the latest weekly initial jobless claims count totalled 222,000 vs. est 233,000. Weakness is the economy suggests the Federal Reserve will not be able to aggressively hike rates. The market wants its punchbowl. Meanwhile, the Federal Reserve meeting minutes suggested policy makers will raise U.S. borrowing rates at a faster-than-expected pace. The bullish case is institutions hoping the economy is strong enough to withstand more rate hikes. The bearish case is hiking too aggressively will burst the QE bubble.
Focus List Notes:
All three names remaining on the list, AMZN, NFLX, and NVDA have formed v-shaped patterns that appear vulnerable to further downside as potential "double-top" formations coming after rapid down-then-up movements on the weekly charts, as discussed in the Focus List Review this past weekend. AMZN's daily chart, below, illustrates this V-shaped double-top appearance:
Market Lab Report - Pre-Market Pulse for Thursday, February 22, 2018
|Published:||22 Feb 2018 08:43 ET|
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.