The NASDAQ Composite Index powered to new highs on the first day of trading in 2018, closing above 7,000 for the first time in its history. The ebullience was helped at least in part by talk from a Citigroup (C) analyst that Apple (AAPL) had a "40% chance" of buying Netflix (NFLX). We had previously issued a pocket pivot report on NFLX last Thursday, when the stock rallied sharply above its 50-dma on heavy volume. The move did not appear to be based on any specific news at the time, but it is possible that some may have known of the Citigroup call ahead of time.
The S&P 500 Index also posted a new all-time high. Both the NASDAQ and NYSE traded higher, but below-average, volume on the day. Gold also pushed through near-term resistance at the 1308 level. Futures are up again this morning.
During the day, we noted big pocket pivot moves in Alibaba (BABA) and Weibo (WB) (along with Facebook (FB))as Chinese stocks rallied sharply on a strong Chinese Manufacturing PMI number of 151.5 vs. expectations of 150.5. These stocks were starting to look like dead money, but the manner in which they suddenly sprang to life is remarkable, to say the least, and shows how some of the strongest action in stocks can occur when things look the least appetizing. This is what we refer to as the "Ugly Duckling" principle.
Focus List Notes:
Caterpillar (CAT) posted an outside reversal yesterday on above-average volume as industrials took a back seat to the strong action in big-stock NASDAQ names.
Facebook (FB) posted a pocket pivot coming up through its 50-dma. It ended the day at the top of a three-week price range, so technically has not cleared resistance. However, risk, down to the 50-dma is minimal since the stock closed 1.9% above the 50-dma. Keep in mind that earnings are expected at the end of January.
Reminder: New members should make sure to review the latest reports on the Member Home page as soon as they sign up. This helps to bring new members up to speed on what the latest reports have been.
Market Lab Report - Premarket Pulse for Wednesday, January 3, 2018
| Published: | 3 Jan 2018 08:38 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.