Major market averages sold off yesterday on lighter volume. Fears over a government shutdown were again cited as the reason for the sell-off, but an initial slide was bought into as the indexes closed well above their intraday lows. In addition, the percentage declines were negligible. as was the case with the NASDAQ, which closed down a mere -0.03%. The NASDAQ 100 Index was up 0.02%, while the Dow was down the most at -0.37%, still a paltry decline given the extended state of the indexes at this time.
Futures are currently higher on investors shrugging off concerns of a government shutdown in anticipation of a continued bull run during earnings season. The House on Thursday passed a spending bill
that would keep the government funded through Feb. 16, but the stopgap measure currently doesn’t have enough support to clear the Senate.
Note that while U.S. government shutdowns aren't always bad for stocks, the following slide is misleading since, for example, the NASDAQ Composite fell -3.5% along with other major indices after 9/30/13 before recovering by 10/11/13 then gaining an additional 3.1% by the end of the shutdown:
Focus List Notes:EA posted a pocket pivot as it gapped up slightly and away from its 10-dma.
FB regained its 50-dma by nine cents on lighter volume, but volume that was still 36% above-average. As we wrote yesterday, we viewed the stock as buyable with the idea of using the 174.67.
NVDA remains within buying range of its recent buyable gap-up and base breakout.
SQ is holding along its 50-dma as volume declines. We would expect to see the stock continue to hold support along the line.
TTWO remains in a buyable position along its 20-dema, and yesterday briefly pulled into the line, providing a more optimal, lower-risk entry opportunity for those alert to it.
WB posted a new all-time closing high, but we would prefer to see pullbacks to the 10-dma as lower-risk entries, if we can get 'em.
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.
