Major market indexes were flat to down yesterday on lighter volume. The indexes rallied early in the day but stalled and reversed as demand quickly waned. As we discussed over the weekend, given the trendless, choppy nature of this market there is no reason to be buying stocks.
Future are up about half a percent at the time of this writing. The price of the 20-year bond ETF TLT has dropped sharply over the last week while the 10-year rate TMUBMUSD10Y, -0.19%
looked like it was about to break above the psychologically important 3% handle. Higher bond yields push up borrowing costs for companies.
Earnings season continues with more than 80% of the S&P 500 companies reporting beating profit forecasts. That compares with the fourth quarter of 2017, when around 73% of S&P companies topped estimates, according to FactSet data. Of course, as we have said, earnings have been inflated due to record levels of corporate stock buybacks due to QE capital finding its way into US stocks.Focus List Notes:NFLX
failed to hold the 323.77 intraday low of last Tuesday's buyable gap-up move and filled the prior gap. The breakdown was attributed to the company's announcement of a $1.5 billion bond offering this morning before the open.LITE
broke badly below its 200-dma and has been removed from the Focus List.
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. ©2023 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.