The Naz and All That Jazz

One of the first observations we made with Members out of the gate this morning was that the Nasdaq was notably lagging the other major averages. If bulls did not fix that situation sooner than later, we were looking to see if the rest of the market would give up any semblance of an early bounce and head on lower, especially given that the volatility ETFs have been staying bid.

At the moment, it appears the Nasdaq weakness is a bit too much of a burden on a market trying to sustain upside off yesterday's intraday reversal higher.

Moreover, earnings rallies from the likes of Dow heavyweight Boeing (BA) is proving inept at keeping the Dow green, though it is still rather early on in the session.

The main takeaway from this action, however, is that the corrective nature of the broad market remains very much in place, despite the cheerleading and hope seen in yesterday's rally for a renewed uptrend. As a result, a defensive posture is still likely correct until proven otherwise.

That said, a name like PagSeguro, which is a Brazil-based online/mobile payment-based e-commerce service, has been notably firm as select Brazil stocks respond favorable to changing political winds in that emerging market titan. 

On the PAGS daily chart, below, we can see the basing action by price above the $30 prior breakout level. With earnings not until after Thanksgiving, I want to keep PAGS on the radar as an end-of-year mover with explosive growth potential. But, again, we likely are going to need to see better overall action in equities for that thesis to come to fruition.