Major market averages continued to defy the odds by rallying ever closer to their prior highs in a very steep, v-shaped rally that may appear vulnerable to a pullback but so far has not shown any inclination to do so. The large-cap NASDAQ 100 Index posted its second-highest closing high in history yesterday as big-cap NASDAQ tech leaders continue to march higher.
Futures are roughly flat at the time of this writing. The new Fed chairman Jerome Powell said Tuesday, “In gauging the appropriate path for monetary policy over the next few years, the FOMC will continue to strike a balance between avoiding an overheated economy and bringing PCE price inflation to 2% on a sustained basis." Three rate hikes for this year remain on the table, but intense debate is expected as to whether a fourth hike may be needed to keep inflation at bay. Powell will answer lawmakers questions starting at 10 am ET.
Focus List Notes:
AMZN forged a new all-time high yesterday as it continues to rally in a steep and deep v-shaped formation. The extreme v-shaped formation makes the stock look vulnerable to a pullback, but so far nobody has bothered to tell the stock this. Meanwhile, it has not offered any lower-risk entry opportunities along the way.
NFLX broke out of a short, mini-cup-with-handle formation yesterday on below-average volume to post new all-time highs.
NVDA is choppoing around near its prior highs and just above the 10-dma. A test of the 10-dma at 241.77 might offer a lower-risk entry, although the deep v-shaped formation does appear riskier to buy into up at these levels. However, if other big-stock NASDAQ names are any guide here, it could just as easily launch to new highs.
Market Lab Report - Pre-Market Pulse for Tuesday, February 27, 2018
|Published:||27 Feb 2018 08:53 ET|
Like what you read?
Let us help you make sense of these markets by signing up for our free Market Lab Reports:
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. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.