Major market averages continued rallying towards their 50-dmas yesterday on the third day of a strong oversold reaction rally that began last Friday. Volume was lighter, but this may not be all that negative since the market sold off early in the day, but sellers failed to materialize and the indexes recovered into positive territory.
After being up around 0.4% in premarket trade, futures plummeted and are currently down around -1% as U.S. consumer prices rose more than expected in January, underscoring the view that the Federal Reserve will be forced to tighten policy more aggressively this year. The CPI rose by 0.5% last month vs. est 0.3%. Year-over-year, consumer prices rose 2.1% vs est 1.9%. Consumer prices, excluding food and energy costs, rose 0.3% vs. est 0.2%. Core consumer prices rose 0.2% in December.
Focus List Notes:
AMZN moved further up and off its 20-dema. Look for this to perhaps retest the 20-dema in a consolidation type of move that would offer a lower-risk entry along the 20-dema.
NFLX is holding along the 20-dema as volume declines, making it more attractive as it starts to settle down. Any small pullback to the 20-dema on light volume might offer a lower-risk entry with the idea that the stock must hold the 20-dema to remain viable.
NVDA is also holding tight along its 10-dma and 20-dema as volume declines, putting it in a more attractive entry position here using the 20-dema as a tight selling guide.
Market Lab Report - Premarket Pulse for Wednesday, February 14, 2018
|14 Feb 2018 08:41 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.