Major averages yesterday fell on mixed volume. Global unrest is adding volatility and selling pressure to the way markets trade as the U.S. authorizes airstrikes in Iraq and a trade war escalates between Russia and the West.
Solar stock SolarCity (SCTY) had a pocket pivot on a strong earnings report after reporting a smaller than expected loss. This sent FSLR higher as well as FSLR had reported strong earnings on Tuesday after the close. While a pocket pivot occurred on FSLR on Wednesday, the selling pressure in the general markets in addition to SCTY reporting earnings after Thursday's close created a higher-than-normal risk situation in FSLR, especially had the earnings report in SCTY disappointed.
Netflix (NFLX) had a pocket pivot as it attempts to recover from a prior late-stage breakout failure. NFLX CEO Reed Hastings compared his company's revenues to HBO on a Facebook (FB) post, sparking the move.
As you can see, it is important to weigh upcoming earnings not just in the stock you are watching but also in stocks within the same industry group which could affect the price of stocks in that entire industry group. FSLR and SCTY are the two largest stocks by market cap, so have the greatest potential to impact the short term performance of the group.
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.