X
X
Tired?
Unfocused?
Off your game?

Read our free Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
YES, SEND ME THE REPORT !
NO, I'M NOT INTERESTED
Your email will always remain private.

Market Lab Report - Premarket Pulse 1/22/18

Major averages rose on mixed volume as they continue to wend their way to new highs, tracking their respective 5-day moving averages. Such periods come to an end either by way of the index moving sideways which allows its 10-day line to catch up, or it undergoes a more substantial correction often piercing or violating its 20-day line. In today's QE-driven markets where stocks are the new bonds, such corrections have been limited to a scant few percent at best.

Futures are roughly flat at the time of this writing as the federal government on Saturday partially shut down for the first time since 2013. While it is a sign of strength that markets are not opening appreciably lower in the face of this news, one should not rule out the somewhat extended major averages pulling back to their respective 10- or 20- day moving averages.

On alert are new lows that have been rising even as the averages make new highs, a bearish divergence. We also had two Hindenburg Omen signals on Thursday and Friday which confirms a new signal. That said, this Omen has a fairly weak track record at best but is yet another bearish indication that boosts the odds of a correction, even if it ends up being a scant few percent as has been typical of this market environment.

Repeating Friday's point, U.S. government shutdowns aren't always bad for stocks though the following slide is misleading since, for example, the NASDAQ Composite fell -3.5% along with other major indices after 9/30/13 before recovering by 10/11/13 then gaining an additional 3.1% by the end of the shutdown. A -3.5% drop in a major index implies some leading stocks, especially the ones with higher betas, could be down by 3-4 times that amount.





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.
FOR OUR FREE MARKET LAB REPORT :
Copyright ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing.
All Rights Reserved.
privacy policy