Market averages shrugged off the two-day government closure and held steady early in the day yesterday. Once the Senate broke the impasse and passed a compromise measure to re-open the government the indexes took off and made fresh all-time highs. The measure will keep the government running through February 8.
Futures are roughly flat at the time of this writing. Major averages remain somewhat extended from their 10-day lines. Earnings overall continue to add an upbeat tailwind to the markets.
Focus List Notes:
Most focus list names remain extended. In general, the list has done quite well since we added back several names early in January.
COHR was acting quite well after breaking out last week, but yesterday the stock sold off hard down to its 50-dma on heavy volume. While no specific news item was cited, as best we can tell, the sell-off was perhaps in sympathy to the pre-announcement of negative earnings results by Sanmina (SANM).
NFLX reported positive earnings, sales and subscriber growth yesterday after the close and is gapping up this morning. It is questionable whether this is a buyable gap-up since the stock is already in a very extended position. We would watch to see how well the stock acts on the gap-up this morning, as if it can set a firm intraday low, one could add to an existing position taken down near the 50-dma when we first reported on the stock as a pocket pivot on December 27th.
SQ posted a cup-with-handle breakout on volume that was 25% above-average. The stock has been acting well since last being buyable along the 50-dma per our prior notes.
Market Lab Report - Premarket Pulse for Tuesday, January 23, 2018
|Published:||23 Jan 2018 08:10 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.