Major averages reversed course to finish lower on higher volume. The selloff came late in the day caused by President Trump tweeting to the North Korean president, "Best not make any more threats to the U.S. They will be met with fire and fury like the world has never seen before." North Korea then raised the stakes in a war of words late Tuesday with its military threatening to strike the U.S. territory of Guam in a pre-emptive operation. Reuters and Dow Jones reported a spokesman for North Korea's military said it is carefully examining an operational plan to launch missiles at Guam, where the U.S. has several military bases. Prior to Trump's tweet, it was reported that North Korea had successfully produced a nuclear warhead small enough to fit atop a missile.
Focus List Notes:
The clue provided by the fact that the Focus List has dwindled to eight names over the past 1-2 weeks is coming to fruition as the general market starts to take some heat. Currently we would be cautious about making new purchases, and would most likely avoid them in the face of a continued market pullback.
NFLX has dropped below its 20-dema in pre-open trading after DIS announced yesterday that it would be pulling its content from the online entertainment platform.
NOW is testing its 50-dma, but as we wrote yesterday the stock is starting to act like a potential short-sale target following the prior later-stage failed breakout. A breach of the 50-dma would seal the deal and trigger the stock as a short-sale at that point.
Market Lab Report - Premarket Pulse 8/9/17
| Published: | 9 Aug 2017 08:55 ET |
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