Major averages fell yesterday on lower volume. The NASDAQ Composite appears range bound as it trades under its 50-day moving average while the S&P 500 hit new all time highs on Tuesday before its decline on Wednesday. Normally, pronounced diverges end badly, but all the central bank money printing has had a dramatic effect on keeping markets buoyant, even though this bull market is getting long in the tooth and general markets appear exhausted. There is no reason to take an aggressive stance on the long side of this market given that a reasonable probability exists of another bull trap breakout by the NYSE-based indexes similar to what occurred on April 4th. Investors should remain cautious, and if one does choose to take a long position then of course paying close attention to downside stops is critical.
Property investment management company CBRE Group (CBG) had a pocket pivot yesterday, following up on a prior gap-up that occurred after the company announced strong earnings. Earnings and sales are accelerating, group rank 16. CBG is an old name, and whether it represents some sort of nascent, dynamic leadership in an otherwise muddied general market environment remains a major question.
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.