Major market averages were pummelled yesterday as the Dow posted its second-largest point decline in history, dropping 1,032.89, or -4.15%, lower on the day. All the major indexes posted lower absolute or closing lows on heavy selling volume.
Futures are higher as the market attempts a bounce after yesterday's bloodbath. Congress passed a two-year budget deal this morning. Expect heightened levels of volatility at least for now while the market figures out which way to go from here.
Focus List Notes:
The list has dwindled to only a handful of names, all of which have declined with the market over the past few days, some more sharply than others. During that time, however, we have jettisoned several names from the list, and for good reason. With the market in a full-blown correction, the long side of the market is clearly in limbo, and the fact that we have but three names on the Focus List holding above their 50-dma attests to this. Stocks that have held up so far and remained above their 20-dema or 50-dma are likely just the next names to come apart.
AMZN closed below its 20-dema, which is our current "tight" selling guide for the stock.
FB blew to pieces and appears headed for its 200-dma, which it hasn't tested since late 2016. The stock was a sell earlier in the week when it failed to hold the 10-dma, per our prior notes on the stock.
NFLX again tested its 20-dema, closing just a 22 cents above the line on slightly above-average volume. The 20-dema remains our selling guide for the stock.
NVDA reported a strong quarter after the close yesterday and is gapping up as a result. However, the stock busted its 20-dema on Monday, at which point it became a sell. For those who might still be long the stock, the 20-dema would remain a selling guide now that the stock has regained the moving average after earnings.
SQ closed below its 50-dma, and has failed on its recent supporting pocket pivot at the line.
Market Lab Report - Premarket Pulse for Friday, February 9, 2018
|Published:||9 Feb 2018 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. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.