Markets initially opened nearly 1% lower on negative news out of Ukraine and weak manufacturing data in China but managed to claw their way back into positive territory albeit on weak volume. Price/volume action in the major indices remains bearish despite the S&P 500 just 0.7% from all-time highs, and action on behalf of leaders still remains tepid at best. The last two times the S&P 500 hit new highs, the index went sideways for a few weeks the first time, then corrected 4.4% the second time.
Both the NASDAQ Composite and Russell 2000 remain below their respective 50-day moving averages. The question is whether quantitative easing can continue to push markets higher with contained corrections as it has since January 2013 or whether this time, given the pronounced damage done to leaders, the correction will be more substantial.
Intermune (ITMN) had a pocket pivot after reporting earnings on Friday, though it closed at the low end of its range. Today, it just passed Friday's high. Sales are skyrocketing and it gapped up in February after a strong earnings report. Group rank 41.
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.