Major averages fell yesterday on higher, above average volume. The high volume reversal on the S&P 500 suggests the possibility of short-term weakness ahead. Meanwhile, the NASDAQ Composite rolled over to the downside on heavy selling volume, while the Russell 2000 has now posted three straight down days off of its peak of this past Friday. With interest rates headed higher, the QE-cushion which provided shallow corrections for the major averages may be over. That said, it still remains to be seen whether the market manipulations start to significantly slow.
Only recently, the July - October months were the shallowest in the history of the S&P 500 with odd manipulations occurring on September 9 as we wrote here: https://www.virtueofselfishinvesting.com/faqs/answer/these-markets-are-becoming-increasingly-irregular-in-the-way-they-trade-please-comment. The markets, however, have taken on a different tone, at least for now, since the US presidential election.
Oil jumped nearly 9%, and is up another 4%, on a deal out of OPEC to cut output by 1.2 million barrels a day to 32.5 million barrels, its first production cut in 8 years.
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. ©2020 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.