Major averages fell Friday on lower volume as they digest recent gains. Many leading stocks were, however, getting extended to the upside, and when that has occurred previously in this market it has signaled at least a short-term pullback. This is the primary reason why we have advocated a strategy of selling into extended strength instead of chasing it, and buying into constructive weakness as enumerated in our Focus Lists and Pocket Pivot and Buyable Gap Up reports.
Futures are lower by more than half a percent at the time of this writing as the German government dismissed a media report saying that Chancellor Angela Merkel has ruled out any state aid for German lender Deutsche Bank (DB). Speculation has run rampant that a number of major European banks are in trouble. Indeed, DB and Credit-Suisse (CS) are trading near all-time lows, and in the case of DB, well below the lows it reached in the debt crisis of 2008. DB is currently 92% off its prior highs reached in 2007.
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.