The market suffered a major selloff yesterday; the Dow declined nearly 1%, the S&P 500 lost 1.5%, and the Nasdaq closed over 2% lower. I’m not entirely surprised, there have been red flags popping up under the surface of the market for weeks, as discussed in our regular updates.
Our portfolio held up fairly well to the selling, with the exception of Pembina Pipeline (PBA), Broadridge Financial (BR) and Prudential (PRU). Updates on each are below.
Hold Pembina Pipeline (PBA)
After yesterday’s 3.6% pullback, PBA is now trading right at its 200-day moving average, a level the stock last visited in late June. The stock has strong support a few points below here, around 30.75. While I’m not worried about big additional losses at this point, the latest pullback could mean PBA returns to its multi-month trading range between 30 and 34, and that we have to be patient for a few more months.
Broadridge Financial (BR) moves from Buy to Hold
Broadridge got hit by yesterday’s selloff in tech stocks; the stock is now at its lowest point since late May. BR’s pullback is a little more troubling than PBA’s, technically, breaking the stock out of its recent consolidation pattern to the downside. But since the catalyst was a market-wide selloff, we’ll wait and see what the stock does in the coming days. For now, I’m moving BR to Hold.
Hold Prudential (PRU)
Financials were the second-worst-hit sector yesterday, and Prudential suffered its fourth day of losses in a row. The stock is now trading a few cents above its 200-day moving average, around where it ended June. The stock is still in the upper band of its multi-month trading range. As with PBA, the latest move erodes the short-term technical outlook for PRU, but for long-term investors I’ll keep it on Hold.