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 4/1/14

The major market averages rose yesterday on slightly higher but below average volume. Volume would have finished lower were it not for end of quarter window dressing in the final hour when portfolio managers adjust their positions to improve the appearance of their portfolios. Leading stocks are mostly staging reaction bounces after severe breakdowns since the beginning of March, and no buy points in the form of pocket pivots have been forthcoming. Meanwhile, the alleged "rotation" is occurring in defensive stocks, including oils and foods. Yesterday we saw a number of food stocks including Tyson Foods (TSN), Dean Food (DF), and Cal Maine (CALM) moving higher. In our view, this is not the stuff that strong bull markets are made of, but as money is being shoveled into these areas as institutions move to a more defensive posture, it serves to prop up the S&P 500 relative to the NASDAQ Composite, which has taken the brunt of selling in March. Despite the past two day's rally, the NASDAQ remains below its 50-day moving average.

Federal Reserve Chairwoman Janet Yellen said Monday that the recovery still feels like a recession to many, which is why the central bank will keep its “extraordinary” support for the economy for “some time to come.”

“For the many reasons I have noted today, I think this extraordinary commitment is still needed and will be for some time, and I believe that view is widely shared by my fellow policy makers at the Fed,” Yellen said. “In this context, recent steps by the Fed to reduce the rate of new securities purchases are not a lessening of this commitment, only a judgment that recent progress in the labor market means our aid for the recovery need not grow as quickly."

Despite Yellen's confirmation that QE is indeed forever, the market's rally was somewhat muted, and for now the action can only be viewed as a reaction rally after the earlier selling in March. Futures are up slightly this morning, but it is not clear that the move will hold. Investors should continue to exercise caution and avoid getting sucked into premature rallies.

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