X
X
Tired?
Unfocused?
Off your game?

Read our free Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
YES, SEND ME THE REPORT !
NO, I'M NOT INTERESTED
Your email will always remain private.

Market Lab Report - Premarket Pulse 9/18/17

Major averages finished higher on higher, triple witching volume. The recent tight consolidation followed by Friday's action is constructive.

Central banks continue to scratch their heads. The Reserve Bank of Australia is saying economic growth in Australia is not strong enough to support a rate hike. Then over in the UK, the Bank of England is saying they're prepared to hike rates within months. But that's provided the economy performs in line with their expectations. And isn't this what the European Central Bank hinted at last year? Yet most recently, the ECB said economic conditions did not warrant a hike in rates at this time, and left the door open to actually boosting levels of QE from the already current record levels. 

Perhaps as a response to this uncertainty, major indices seems to be slowing down, or at least more reluctant to move higher. Over the last few months, every time the market hits new highs, it soon reverses course, typically on a negative news event, where gains that took weeks to achieve are reversed in a day. The market then trades in a sloppy, sideways manner for many days until another negative news event hits. Yet the market is quick to find a shallow floor before making another attempt at new highs due to the pronounced effects of QE.

The current market action remains suspect on this basis as the major averages approach new highs once again. That said, the number of names on our focus list has expanded to 15 stocks which suggests the market may trend higher from here, breaking out of this 7-week basing pattern. One should keep in mind that the 5-week basing pattern in early summer which resolved to the upside made minuscule gains for just a few days before tech stocks got hit hard on July 27 on no apparent news. Yet tech stocks have managed to claw their way back over the last few weeks.

This push-pull between QE and weak market fundamentals has been ongoing. It is not a question of how this sovereign debt bubble will burst but when. Keep a close eye on your stops, but always be on the lookout for new opportunities to emerge either on the long or short side whether you're marketing timing via the timing models or using buying or shorting strategies in stocks.

Like what you read?
Let us help you make sense of these markets by signing up for our free Market Lab Reports:
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.
FOR OUR FREE MARKET LAB REPORT :
Copyright ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing.
All Rights Reserved.
privacy policy