Off your game?
Read our free, updated as of Mar 3, 2022, Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
Meet Dr K !
Chris Kacher
  • Nuclear physicist
  • Stock & crypto market wizard
  • Blockchain builder
  • Bestselling author
  • Top 40 charted musician
  • Biohacker
  • Former computer hacker
Your email will always remain private.

MLR - PMP 1/28/14

The major market averages sunk again before bouncing. Volume was lower with major averages closing roughly midbar. The NASDAQ Composite closed less than two points on its 50-day moving average. Major averages could undercut their 50-day moving averages by a couple days before finding their floor. Add to this, a number of leading stocks have been hit hard in the last 3 days which is not surprising since major averages have been taken down more than 3%.

The mid-bar close on the part of major averages is a possible resting point before averages either find their footing and move higher as they've done before, or head lower so they can either complete their 5-6% correction then move higher. Of course, a new precedent since January 2013 would be for major averages to correct beyond 5-6% or even form a market top, but this will take time to develop. And keep in mind markets live to surprise, so don't get complacent and assume markets will automatically bounce within a 5-6% correction.

That said, given quantitative easing, the Fed's position of record low interest rates for a prolonged period, the Fed's position of not acting until employment is well under 6.5%, and an anemic economic recovery, odds favor a market that finds it footing given full blown QE. The Fed completes its 2 day meeting this Wednesday, and while it may taper an additional $10 billion a month, it will have to find another way to keep interest rates unusually low as Bernanke said they would.

Apple (AAPL) shares plunged nearly 10% after reporting earnings on disappointing iPhone sales. This is weighing on the NASDAQ futures this morning but S&P 500 futures are flat to up slightly at the time of this writing.

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.
Copyright ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing.
All Rights Reserved.
privacy policy