Currently the indexes remain in a choppy, rising range following the selling climax that occurred in late August. Many leading stocks remain mired in weak positions within their chart patterns, while some have attempted to recover and were able to hold key moving averages despite yesterday's selling, such as PANW, FB, TSLA, SKX, UA, AMZN, etc. Thus the market may move into a bifurcated phase where some stocks are playable on the long side while others continue to languish and, in some cases, present short-sale targets. If the market is setting up for another leg to the downside, it may take several weeks to develop, and therefore it is difficult for investors to make any firm conclusions aoutside of dealing with the market on a stock-by-stock basis.
Market Lab Report - Premarket Pulse 9/23/15
|Published:||23 Sep 2015 13:05 ET|
Major averages took it on the chin yesterday on higher volume as the market looks poised to potentially retest prior lows as it did in 2010 after the flash crash and in 2011 after the Greek debt crisis arose. That said, should the markets calm down and tighten up as they did twice in the second half of 2012 after two 10%+ corrections, they could move higher and approach old highs. Of course, Operation Twist then QE3 were largely responsible for the markets moving higher back in 2012-2013. So as long as the global economy remains troubled and the Fed continues to push for a rate hike, new highs may be a long way off.
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.