Major averages rose yesterday on lower volume. Futures fell when the European Central Bank announced it would leave its key interest rates unchanged at record lows, thus no additional QE is in the offing, reinforcing its position that with rates near zero, borrowing costs cannot go any lower. Futures then found their quick floor and bounced after ECB president Draghi said asset purchases for at least the next two years will instead be the primary means for the ECB to further stimulate the eurozone's struggling economy and raise the troublingly low levels of inflation, which at 0.3% on an annual basis last month was far below the ECB's target of just below 2%. To add to the deflationary pressures, analysts said they expect inflation to weaken to zero this month on the back of lower oil prices.
Managed healthcare service provider Centene (CNC) had a pocket pivot. Earnings and sales accelerating, institutional sponsorship up 7 quarters in a row, group rank 22.
Tesla Motors (TSLA) has moved below its 200-day moving average and is currently gapping down slightly pre-open. Our near-term downside target on the stock is the low of the prior base at 217.32, with the 177.22 May low representing the second, longer-term price target. Keep in mind, however, that when it comes to shorting, "longer-term" can be anywhere from as short as 2-3 weeks or as much as 3-6 months or more.
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. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.