Major averages closed a hair lower on lower volume. Trading ranges were tight across the markets. This is constructive after seeing Friday's vigorous move higher. Tight price action is also being seen in big-stock leaders like Facebook (FB) and Amazon.com (AMZN).
The pullback in precious metals may represent a buying opportunity as Friday's jobs number was mostly the result of statistical machination. About 80% of the 255,000 jobs reported was due to a Birth/Death model adjustment that added 200,000 jobs to the number. Thus the idea that the Fed will be raising rates soon is not necessarily a sealed deal, so to speak. News-related pullbacks in the precious metals have represented buying opportunities every time in 2016.
Semiconductor Maxlinear (MXL) had a pocket pivot on a strong earnings report. Earnings are soaring, pretax margin 23.8%, ROE 38.9%, institutional sponsorship has grown over the last 6 quarters, group rank 13. We mentioned MXL on July 24 as a possible candidate that could be bought on its pullback.
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. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.