Major averages finished flat to lower on higher volume, closing near the top of their trading ranges. Markets tried to shrug off escalating tensions between the US and North Korea even though unusually blunt and specific threats were aimed at the U.S.
North Korea warned its missiles could surround the U.S. territory of Guam in an “enveloping fire” in coming weeks. According to official state media out of China, “Sound dialogue is not possible” with the U.S. president. “The U.S. president at a [golf] links again let out a load of nonsense about ‘fire and fury,’ failing to grasp the on-going grave situation,” it said, referring to Trump’s warning to North Korea.
Global markets are lower amid heightened tensions between the two countries. Futures are currently off around half a percent.
Focus List Notes:
ANET is pulling back near its 176.50 BGU low of last Friday. This may put it in a lower-risk entry position, but if it fails to hold it could easily move towards the 10-dma to fill the prior gap if the general market continues to weaken.
NFLX gapped below its 20-dema yesterday but closed just above the 174.24 BGU low of mid-July. This sets up an undercut & rally (U&R) type of long set-up, using the 174.24 low as a tight selling guide in case the general market continues to weaken.
NOW is wavering at its 50-dma. A breach of the 50-dma could trigger this as a short-sale target.
NTNX pulled into its 20-dema as volume dried up to -55% below average. This would put the stock in a lower-risk entry position using the 20-dema at 21.65 as a tight selling guide.
In any case where a stock is in a lower-risk entry position, the nearest moving average should be used as a very tight selling guide given the current general market weakness. This is of paramount importance, as the market could easily move lower from here, and in volatile (e.g., rapid) fashion. Investors should be on high alert and ready to act quickly if necessary.
Market Lab Report - Premarket Pulse 8/10/17
| Published: | 10 Aug 2017 09:06 ET |
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. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.