Market averages were up yesterday, led by the NASDAQ, as beaten-down techs, internets and other growth leaders rebounded. This morning, the Bureau of Labor Statistics released its monthly jobs number, reporting 228,000 non-farm payrolls vs. expectations of 190-195,000. The unemployment rate remained unchanged at 4.1%, average wage growth came in at 0.2%, less than the forecasted 0.3%. Futures are up sharply in response, led by the NASDAQ 100 futures as the oversold rally in broken-down leaders takes firmer hold.
Focus List Notes:
CAT rebounded strongly off its 10-dma yesterday, but volume was light as the stock posted a new closing high. Pullbacks to the 10-dma remain your lower-risk entry opportunities.
Over the weekend we discussed the potential for moving average undercut & rally (MAU&R) set-ups appearing if and as broken-down leaders which had previously "violated" their 50-dmas regain their 50-dmas. FB, regained its 50-dma on Wednesday and further cleared the line yesterday on strong volume. That is a typical MAU&R which initially can be viewed as a possible short-sale as the stock rallies up to the 50-dma.
However, in an Ugly Duckling type of market, the MAU&R type of long set-up, where the short is negated and the stock morphs back into a long, is very common and something we discuss frequently in our weekly webinars. It was also discussed in this past weekend's Focus List Review. Other broken-down leaders, such as BABA, NFLX, NVDA, TTWO, and WB, which were previously on the focus list, remain below their 50-dmas, but if this oversold rally truly does have legs, then we might look for more MAU&R types of moves among these names as they potentially push up closer to their 50-dmas. Something to keep in mind as the oversold rally continues this morning.
Market Lab Report - Premarket Pulse for Friday, December 8, 2017
| Published: | 8 Dec 2017 08:48 ET |
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.