Major averages closed mixed on mixed volume, though opened sharply lower after China announced it cut down on risky debt by banning the use of low-grade corporate debt. The new rule is designed to prevent risks from building up further as a result of high debt leverage in the market, and caused Chinese stocks and bonds to tank. The benchmark Shanghai index plummeted 5.4% to record its biggest fall since 2009. That said, U.S. markets managed to claw their way back to nearly breakeven or, in the case of the NASDAQ Composite, finish higher by 0.54%. The more volatile small cap Russell 2000 finished higher by 1.96%. Still, leading stocks continue to lag, and the bounce seemed logical given that several short-sale target stocks, such as TSLA, TWTR, and NFLX, for example, had undercut their near-term downside price targets.
Pharma company Akorn (AKRX) had a pocket pivot yesterday . Earnings are strongly accelerating, pretax margin 31.5%, ROE 27.1%, group rank 5.
Furniture retailer Restoration Holdings (RH) had a pocket pivot yesterday. Earnings are robust, group rank 51. RH is just coming out of a midbar handle. RH reports earnings after today's close.
On an administrative note, members can follow Gil Morales on our Twitter page at @vsinvesting for real-time observations and comments.
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. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.