Major averages dropped yesterday on larger, above average volume. The S&P 500 got support at its 10-week moving average. Two reasons were cited for the selloff: First, Fed Chairperson Yellen said they could lower rates again should they hike in December. Second, the European Central Bank lowered rates but at the low end of expectations sending European markets lower.
The markets seem to be telegraphing it wants more quantitative easing from central banks such as the ECB but that it also wants reassurance from Fed Chairperson Yellen that a rate hike is a sign the economy in the US may be turning a corner. Yesterday, the markets got neither. The ECB disappointed by not easing enough, and Yellen reiterated that any rate hikes would be done slowly as needed, and could even be reversed.
Regardless of the reasons behind the selloff, all that matters is price/volume action when it comes to taking profits and keeping stops tight in context with the chart and general market.
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.