Major averages fell yesterday on higher volume as financials got clipped ahead of the presidential inauguration. While some believe markets will sell off just after the inauguration, this bearish market action was also expected should Trump win the election. While US S&P futures did lock limit down overnight when it looked as if Trump would win, they roared ahead when US markets opened the next day on news of the Trump victory.
The CPI rose 0.3% in December matching consensus while core CPI, which excludes food and energy, increased 0.2% also matching consensus. Year-over-year, total CPI is up 2.1% and core CPI has increased 2.2%.
Arista Networks (ANET) broke down yesterday on negative news, breaching its 50-day moving average on a high-volume gap-down. The move also took the stock below its prior 3WT flag breakout point instantaneously. ANET reminds investors that stocks are risky, and the potential to get blind-sided by news of any kind is ALWAYS a factor. In the case of ANET, if one were long the stock, the only intelligent thing to do would be to sell on the gap-down and get out of the way. ANET opened at 94 and closed at 88.23, illustrating that acting quickly is often your best course of action if caught in a situation like this.
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. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.