The major market averages finally broke out of their tight, sideways consolidation on higher volume. Janet Yellen will begin her confirmation hearings to succeed Ben Bernanke as the next Federal Reserve chief. Yellen has been very pro quantitative easing which is naturally bullish for the markets and may have contributed to the days positive action.
Taser International (TASR) did not trade enough volume to qualify as a pocket pivot yesterday, but it did manage to pull off a short trendline breakout on above-average volume. We first reported on TASR on October 30 when it had a buyable gap up on strong earnings. It has since undercut its gap up low by around 3%, so you may have partially cut your position around that level since we suggest some porosity, typically 2-3%, though this can be lower or higher depending on the volatility of the stock. TASR is quite volatile and trading in the teens so a porosity of 3-4% is not unreasonable. Of course, if this is beyond your risk tolerance level, you might buy only a fraction of your normal position or not trade it at all.
This morning futures are mixed, but members should stay alert for real-time reports as leading and emerging leading stocks become actionable.
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. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.