Major averages finished roughly flat on lower volume in a quiet session. While the recent market weakness is due to fears the Trump tax plan may not pass in full, central bank buying of stocks keeps corrections to a minimum as stocks are the new bonds. Stocks such as the FAANG stocks as well as other mega cap names correct minimally as their risk levels have dropped in this QE environment. Central banks print money then use that money to buy these stocks. Dow stocks all make good targets for central bank buying which explains why its worst correction this year is a scant 2.6%.
While we are in a seasonally strong period, keep your stops tight as all it takes is a brief period of mild market weakness to trigger far greater losses in leading stocks. This has been the pattern for much of 2017.
Economic reports this week include the October Producer Price Index on Tuesday, the October Consumer Price Index and October Retail Sales on Wednesday, and October Housing Starts on Friday.
Market Lab Report - Premarket Pulse 11/13/17
|Published:||13 Nov 2017 09:02 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. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.