Major averages finished near break even on mixed volume. The NASDAQ Composite is on the verge of hitting new multi-year highs while the small cap Russell 2000 is catching up after taking a beating in the March-May selloff. Market internals continue to look well. Futures are down this morning after the World Bank issued an economic report that lowered its global growth estimate from 2.8% from 3.2%. With the indexes somewhat extended from their recent breakout points, the S&P 500 having broken out through its prior highs while the NASDAQ and the Russell 2000 have broken out through their prior downtrend lines and 50-day moving averages, perhaps anything that gives investors an excuse to sell will have some impact. However, we've seen the indexes try to sell off on an intra-day basis several times before over the past week or so before closing near their daily peaks, so the market will be faced with another pullback, and investors will have a chance to see whether the market remains resilient.
Facebook (FB) had a pocket pivot yesterday. It broke out of a handle that has formed at the mid-point of its cup base. Earnings and sales have accelerated strongly, pretax margin 47.7%, institutional sponsorship has increased last 9 quarters since its IPO. With the stock pulling back slightly this morning as a result of the weak futures at the time of this writing, investors are provided with a lower entry.
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. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.