The major market averages fell yesterday on lower volume. The S&P 500 is flatlining but contains a number of distribution days off the peak over the last 2-3 weeks. Sharp damage has been done to leading stocks, so indices and leading stocks could continue their healing process by trading sideways or in a shallow cup formation before heading higher. That would be a positive scenario. The other possibility is major averages carve out lower lows in the days ahead before finding a floor. Keep your stops tight if you are holding any long positions.
While Netflix (NFLX) is trading slightly lower this morning after missing earnings estimates yesterday after the close, Chipotle Mexican Grill (CMG) surprised investors with a 17% increase in sales and is set to gap up this morning on what would also be a breakout from a cup-with-handle base. This likely will develop into a buyable gap-up move, and we will report on this as necessary later this morning.
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. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
