Major averages gapped down at the open and continued lower on higher volume. Given the market's extended state after a strong start to the New Year, the sell-off was well within context. Futures are up sharply this morning after the State of the Union speech last night and a strong ADP jobs number showing 234,000 new jobs vs. estimates of 190,000.
Focus List Notes:
AMZN shrugged off the market sell-off and rallied on news that it was partnering up with J.P. Morgan and Berkshire Hathaway for enter the health care business. The news had the effect of slamming leading healthcare names like UNH, for example.
EA came in with a strong earnings report yesterday after the close and is gapping up this morning. Watch this closely for a possibly actionable buyable gap-up (BGU) once it has set an intraday low.
FB sold off during the day but rallied to close up on the day as it found support near its 50-dma. Earnings are expected to be reported today after the close.
SQ sold off with the market early in the day but found support at its 20-dema and the top of its prior cup-with-handle breakout of seven trading days ago.
TTWO is moving higher in sympathy to EA, but not by much.
WB gapped down and found support at its 20-dema, which would serve as a lower-risk entry point as well as our preferred selling guide. Bottom line: the stock needs to hold support here, otherwise a test of the 50-dma may be in store.
Market Lab Report - Premarket Pulse for Wednesday, January 31, 2018
| Published: | 31 Jan 2018 09:10 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. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.