Major averages rallied Friday on above average volume as a strong rebound in Deutsche Bank (DB) after the bank's CEO described the bank's capital position as solid, noting that liquid reserves are well above pre-crisis levels from 2007. In addition, AFP reported the bank's MBS settlement with the Department of Justice may be reduced to $5.4 billion from $14.0 billion, though a final settlement has yet to be reached. Shares of DB are trading roughly flat to Friday's close at the time of this writing.
The S&P 500 closed a nickel below its 50-day moving average while the NASDAQ Composite is making another stab at new highs. The two indexes are continuing to diverge slightly as the S&P 500 lags, but leading stocks on our Focus List continue to hold up, offering actionable buy points on constructive pullbacks as demonstrated by a number of reports we have emailed to members.
It is not clear how much progress the market will be able to make ahead of the early November Presidential Election, and we would not be surprised to see the indexes continue to chop around through October. However, as the months of August and September proved, material opportunities in individual stocks can emerge despite the trendless index action. Therefore investors should remain focused on the action of individual stocks, where profitable moves can be found.
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.