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Market Lab Report - Premarket Pulse 9/26/17

Major averages fell on higher, above average volume, closing roughly midbar. Technology leaders and Chinese stocks were pummeled. All the FAANG names are below their respective 50-day moving averages except for NFLX which tried to get support at its 50-day but closed just above it on higher, above average volume.

Fed Chair Janet Yellen is scheduled to give a speech titled "Inflation, Uncertainty, and Monetary Policy" in Cleveland today at 12:45 ET. Fed funds futures puts the odds of a hike later this year at 77.9%.

Several other Fed officials will also speak today, including Cleveland Fed President Loretta Mester (non-FOMC voter) at 9:30 ET, Fed Governor Lael Brainard at 10:30 ET, and Atlanta Fed President Raphael Bostic (non-FOMC voter) at 12:30 ET.


Focus List Notes:

Most  of the names on the list broke apart yesterday on heavy selling volume as big-stock NASDAQ and tech names were pummeled in a show of abnormal distribution.

ANET broke sharply off of Friday's new-high peak on heavy volume yesterday but held above the 179.71 peak of its prior base. A breach of the 20-dema would set this into play as a late-stage failed-base, so caution is advised if one has not sold already based on yesterday's action.

BABA broke below its 20-dema yesterday on very heavy selling volume. In our view, the 20-dema serves as a reasonable selling guide, as discussed before, so the breach of the line is a bearish development.

EA broke below its 50-dma on heavy selling volume. It has been removed from the list.

FB broke sharply below its 50-dma on very heavy sellingr volume. It has been removed from the list.

FEYE held up reasonably well yesterday, but we would advise using the 20-dema as a selling guide to keep risk under control.

NFLX broke below its 10-dma and 20-dema yesterday on heavy selling volume, but found support at the 50-dma, closing just above the line. This already looks quite bearish, and a breach of the 50-dma would, in our view, represent the maximum downside selling guide for the stock.

TTWO broke sharply below its 20-dema yesterday on heavy selling volume. We would use the 20-dema as a selling guide.

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.
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