A strong rebound in Europe this morning is driving U.S. futures higher following another distribution day on Friday. Volume increased on Friday compared to volume levels on Thursday, giving the major averages another day of distribution as the third quarter wound down to a close. Personal income in August, University of Michigan's consumer sentiment index, and the Chicaco manufacturing index all missed estimates while personal spending matched estimates. Over in Spain, most banks passed their stress tests.
While the quarter came to an end on Friday, some fund managers will buy a particular stock to window dress their portfolio, while others will sell stock to lock in profits or dump losers. Either way, Friday was a distribution day for the major indices but so far the market uptrend remains intact.
Markets may also be looking forward to comments from Fed Chief Ben Bernanke today as he is expected to defend and bolster the case for and effectiveness of QE3. Keep a close eye on the precious metals, gold and silver, as they have closed very tightly over the past three weeks, constructive action that likely presages a move higher in the coming days and weeks.
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.