The market continued its rallying way following Wednesday's follow-through, although an early-morning reversal that saw the Dow go from up over 200 points to negative was a bit unsettling. By the close, however, the Dow ended the day up 306.88 points as intraday volatility cointinues to be the order of the day. We have to admit that the action is a bit confounding since the recent sell-off was one of the worst in history in terms of its velocity and rapidity, as we noted yesterday. But this market continues to act in a manner that is somewhat of a "Deus ex machina," where the market seems to be ruled by the action of algo-driven machine-trading that sends the market sharply lower then sharply back to the upside after shaking everyone out when it is least expected. In the process, everything simply travels in a v-shaped move where normal rules no longer apply. As Gil has noted in several live webinars over the past few months, the new "buy signal" is just a high-volume sell-off that in the past would indicate more trouble ahead. If its down big on volume and looks as ugly as it can, it's a buy. This is the essence of the Ugly Duckling Principle that remains a force to be reckoned with in this market.
Futures are roughly flat at the time of this writing. Volatility has not necessary been wrung out of the market as a pullback of some magnitude after this straight-up-from-bottom action would not be a surprise.
Focus List Notes:
While we have only three names on the list currently, they prove the point that when the market is in rally mode, it's not necessary to try and "kiss all the babies. AMZN, NFLX, and NVDA all continued higher yesterday and are now extended as they approach their prior highs. AMZN posted a new all-time closing high, and the other two remain close to doing the same.
Market Lab Report - Premarket Pulse for Friday, February 16, 2018
|Published:||16 Feb 2018 08:42 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. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.