GARY TALKS THE FED AGAIN INVADING MARKETS!

This morning’s headline:
“Fed’s Yellen says QE taper does not mean reduced stimulus; says 2% inflation target is taken seriously; economy needs extraordinary support for some time; Fed short of reaching its targets!”
Or as we think: “Fed’s Yellen sees risk being sold in market…pulls a Bernanke and opens yapper to get juices flowing again.”
We would like to say we are joking…but we are not. For quite a while, we have seen nothing more than a Fed reacting to any drop in markets by yapping them back up or by printing a ton of money. Remember, QE3 was born out of a sharp drop in the market. Just recently, European markets were plunging again. What did the ECB do? They announced they are looking at QE. They know the game. All of this is off of weakening economic numbers around the globe.
We watched the “60 Minutes” piece on how supposedly the markets are being rigged by high frequency traders. Frankly, they need not look further than the Fedheads around the globe that with no accountability, continue to be able to conjure up unimaginable amounts of money in order to keep markets from the big yonk.
As far as the market, coming into today, we have seen 6 straight days of gaps to the upside and 6 straight days where markets were distributed off the gap. We have seen risk areas implode while defensive areas have come to the fore. This is evidenced by the NASDAQ/NDX and SMALL CAPS underperforming the DOW and S&P. As of this second, we will just call it vicious sector rotation. Our interest will not be in today as it is the usual end-of-quarter window dressing. (Which by the way, is illegal and does not happen.) Our bigger interest will be April. But as of now, indices remain rangebound with heavy sector rotation as we enter the 2nd quarter.
Sector-wise, our call of bullish action in Gold finally hit a wall and is now back in no man’s land. Semicondutors remain the strongest area with good action and good set-ups in many oils. The all-important big financials remain mixed but holding support. Regional banks are leading this area. Lastly, in the past 2-3 weeks, the worst countries have been the strongest as Russia, Asia, Brazil and emerging markets finally have caught a bid after a nauseating year.

IF YOU WANT TO KNOW HOW IMPORTAT COLLEGE IS!

THIS IS WHAT ARE F—-ING TAXPAYER DOLLAR ARE GOING TO?

Are they f—ing kidding?

SOURCE: http://dailycaller.com/2014/03/26/feds-spent-700000-on-a-climate-change-musical/

 

GOV CHRISTIE GETS OBAMAITIS!

Hires lawyers who come out and say he is innocent of knowing anything about Bridgegate! I KNOW NOTHING!

SOURCE: http://www.dailymail.co.uk/news/article-2590466/Christies-lawyer-Governor-not-involved-plot.html

ANTI-NRA CALIFORNIA DEM INDICTED ON GUN TRAFFICKING! INSERT JOKE HERE:

SOURCE: http://www.mediaite.com/online/anti-nra-california-democrat-indicted-on-gun-trafficking-charges/

GARY K ON THE MARKETS

We wrote this to you last time:
 
“Regardless of the recent rally, we continue to believe we are in a late stage environment as so many characteristics of a late stage market are showing up. They include:
 
Duration…all bull moves have a shelf life…even with the printing of trillions. 
 
A huge increase in margin. Remember, margin is your best friend in a bull and frankly, is one of the main characteristics that show up during a bull. But when markets top, margin is the market’s enemy as margin gets sold down first and quickly…exacerbating the selling.
 
Tons of IPOs with the bar lowered recently as we are seeing a few too many names coming public that have no sales. Yes…we said no sales. The wonderful investment banks are very good at coming up with anything as long as the public continues to bite.
 
Tons of secondary offerings.
 
Massive insider selling with a clear lack of insider buying.
 
Bearish measurements remaining at multi-decade lows. Dare we say some of these measurements have to go all the way back to 1987 to find this lack of bearishness.
 
There is more. Just realize these are the characteristics that always show up near the end of bull runs and in advance of the tops. The issue is when as often, we are talking months in advance. The last time the market really topped back in 07, it took months of deterioration before the final top occurred. Keep in mind, while the market was deteriorating back in 07, the Dow went into new high ground…masking the trouble.
 
So far, we are seeing nothing more than rolling corrections as the major indices remain above the important moving averages. The most important point we need to make is that as the major indices have moved into new high ground, fewer and fewer stocks and sectors have accompanied the move. We count only about 60% of the market in good technical shape right now. At lower prices for the major indices, the number had reached into the 80s. This is a negative divergence.”
 
FAST FORWARD TO TODAY…WITH A LOT HAPPENING UNDERNEATH THE SURFACE. IN FACT, ANOTHER COUPLE OF WARNING SIGNS HAVE SHOWN UP.
 
Firstly, the DOW is now outperforming as the NASDAQ-types sell off badly. This is not the greatest news as very often, near tops, risk is sold and “parked” into the low beta, mega-cap names in the DOW. This only lasts so long.
 
Secondly, and more importantly, growth stocks and risk areas that have led the market up are being bludgeoned. In just the past couple of days, the BIOTECHS were sold hard with many breaking the 10 week/50 day average. On top of this, leading growth in TECH and INTERNET also came under severe pressure with many also breaking badly…all on heavy volume.
 
Thirdly, which goes hand in hand with the first two, tons of distribution days in the NASDAQ at the recent highs.
 
So careful. Again, markets do not top in a flash. Instead it is a process…and there is good potential this process is continuing to play out. So far, just a big rotation out of “risk” and into what we would call “lesser risk” areas. We will be watching moving averages and support areas very closely in the days and weeks ahead as the ice feels like it is getting thinner. The “risk” indices are teetering while the better indices are churning. 
 

HEARTWARMING AND HEARTBREAKING AT THE SAME TIME!

SOURCE: http://www.huffingtonpost.com/2014/03/24/alisa-finley-bucket-list_n_5007956.html?icid=maing-grid7%7Chtmlws-main-bb%7Cdl19%7Csec1_lnk3%26pLid%3D457457

NOT THAT I AM THRILLED WITH REPUBLICANS…BUT PLEASE BE RIGHT!

SOURCE: http://www.nationaljournal.com/off-to-the-races/numbers-don-t-lie-it-s-a-tough-year-for-democrats-20140324