Major averages fell yesterday on higher volume with both the S&P 500 and DJIA closing once again below their respective 50-day moving averages. Another distribution day was added to the already high tally. The put-call spiked above 1.0 but as we have discussed before, the markets can head lower for a few days or more before finding their floor, so this indicator is secondary at best and must be placed in context with other factors.
With levels of QE potentially on the rise in China and with the US Federal Reserve continuing to take a dovish stance, another uptrend could emerge as newly minted money has to fine a home. The stock market presents better returns than the bond markets which have been at near zero rates of interest and will probably continue to hover around such levels for a prolonged period.
Pharmaceutical company Cambrex Corp. (CBM) had a pocket pivot breakout. It gapped up on its prior earnings report. Prior to this gap up, its pattern was sloppy, but now with this subsequent pocket pivot, the technical pattern is sufficiently actionable. Earnings and sales are accelerating, group rank 16.
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.
