Major averages finished roughly flat yesterday on slightly lower volume as the NASDAQ Composite approaches its 200-day moving average.
The market's resilience yesterday in the face of the terrorist attacks in Belgium speaks, in general, to the power of the quantitative easing manipulations by central banks, and also to markets that are less sensitive to this type of news which is usually small in scope with respect to stocks and economies. The markets even quickly recovered their losses that came in the 9/11 aftermath by rallying off lows for a few months, as such attacks do not attack the heart of economies. That is left up to the Fed and other central banks, political entities that they are. Indeed, the economic patient has heavily clogged arteries but the Fed keeps giving the patient morphine and band-aids.
However, the market rally off the February lows has become extended and is entitled to some consolidation. We would simply advise keeping an eye out for more objective signs of a potential rally failure. The first sign of this, from a material standpoint, would be downside stops being hit in our current long ideas.
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. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.