ONE TECHNICAL PROBLEM STICKS OUT FOR US

We will have a bigger report on Sunday but:

Tech acts well. Internet acts well. Beta acts well but:

JUST WATCHING FINANCIALS. They rallied up a little bit this week but the pattern, to our eyes, is suspect. It looks like a topping process. Bad break, rally up into resistance (which was support) and moving averages and than make a lower high rolling over again. The lower high has not been made yet but one decent down day from here will take care of that. Next Friday starts the FINANCIALS earning’s free-for-all. We are in hopes the reaction is positive. We continue to highlight this area because it has led since the election.

PRE MARKET

Wish we had more to say…futures down a wee bit as it looks like the market may be settling into some rangebound action. This is not bad at all. The market does need rest. The market does not to work off some froth. The good news is that while it rests, the action underneath for areas like the semis remain strong. Have a great weekend. Will have weekely wrap up for you on Sunday.

 

CHART OF THE DAY- AMAZON BREAKS TO NEW HIGHS AS BEZOS BECOMES 2ND RICHEST IN THE WORLD

And we remember CNBC making fun of the man and his laugh many years ago.

Trump To Meet With The Head Of China!

The White House has confirmed that China’s president Xi Jinping will meet with President Trump at Mar-a-Lago in Florida on April 6-7.  This comes at a time when there is lots to talk about. For starters, Trump has been railing against China since his campaign using words like “cheats” to describe China’s currency and trade. We suspect the rhetoric will calm down leading to this meeting. On top of that, there are other worries as North Korea continues to want to show muscle but also the disputes in the South China Sea.

The fact is both sides need each other and need to work together. More on this as we get closer.

PRE MARKET

Very quiet pre market but just remember retail, energy…twqo down and dead areas, finally back to some life…in counter-trend rallies. We will let you know if it is meaningful. So far, oversold rallies.

LULU big gap to the downside. LULU quite the untrustworthy company at earnings time.

Next Friday starts the earnings brigade with the financials as C, JPM, WFC, PNC report. Sgtay tuned.

And lastly, Target (TGT) had 3 insiders buy small amounts of stock in the open market. Not sure if it is meaningful but thought worthy of mention since there has hardly been any insider buying anywhere.

THE CLOSE

The market was much better than Dow down 42. A/D 2-1.

Down and out and dead Retail wakes up off the lows. Very oversold and overdue but still in bear market.

Energy still rallying off reversal lows from 2 days ago.

Strong moves in beta today as AMZN breaks out on volume with good action in others.

Financials still feel like the accumulation is stopped for now. Sure, they have bounced but it has been anemic.

REMEMBER, AS LONG AS MAJOR INDICES HOLD ON TO THE 50 DAY AVERAGE, WE GOOD. A BREAK BELOW AND WE WILL BE TALKING.