Futures flattish this morning.
Good rebound off the 50 day moving average for the dow,s&p,nasdaq. As long as these important support areas hold, we good. A break and there is more of a correction in store. As we have told you, corrections are normal and quite overdue. It is good to see the hold and it is good to see decent action in growth leaders while market corrected.
Do not forget… it is end of quarter window dressing period.
And lastly, we will have our own op-ed tonight on the op-eds that have been coming out about Trump and the roll back of regulatory legislation. It is quite funny. We will also have our continued thoughts on the assinine media bias. Slept for 8 years but now 24/7 private investigators. Keep in mind, we are not the biggest fans of the new president. There are definitely things we like but there is definitely things we do not like. We’ll call it 50-50 but jury is still out…at least the unbiased jury. More tonight. We write about these things because of the importance of returning power to where it should be…in our hands. For too long, it has been in the hands of Washington and all we got was promises and $20 trillion of debt…caused by both sides.
Good rebound off the 50 day average for dow,s&p,nasdaq and many names that are inside the indices. As long as yesterday’s and today’s support holds, we should be fine. We will give the market the benefit of the doubt until otherwise. Financials did the trick as they have led up and led down. Worst areas were best today as energy, commodities and others came off the floor. Just know that internals have gone south so fewer and fewer names and areas are now leading. Something to watch. We remain in the end-of-quarter window dressing period which of course is illegal so does not happen.
Yesterday’s thoughts that the reversal would lead to some upside testing is now taking place. The key is the 50 day moving average which was tagged by the dow and s&p and almost tagged on the nasdaq. Looks like we have held support right where it needed and right where the big money crowd defends markets in pullbacks in bullish phases. And of course, the financials wake up, which is leading the day. Whether or not this really gets going is another story.
Also wanted to mention the oversold energy area also having a good day but rallies occur in bearish phases and energy is in a bearish phase.
After yesterday’s decent reversal, futures down but hardly down. Of vital importance yesterday: the Dow and S&P held on to their 50 day moving average. This is the first visit to this important area since November 7th and is quite normal to finally happen. There is nothing wrong with a pullback into it as long as it holds. Duh! Keep in mind, underneath the surface of the indices, things not so great…especially the very important and vital financials that remain under pressure. Continue to watch as just about all names trading below the 50 day with some much worse.
DRI and RHT with little gaps to the upside off of earnings. Darden announced they are buying Cheddars as they try to expand.
TESLA up again as someone takes a 5% stake in the company. TSLA held the 50 day a couple days ago and has ripped to the upside since.
In Trumpland, now pivoting to tax reform…but looks like there are differing factions there also. The new president has learned quickly and the hard way that Washington is a lot different than the real world.
Good day considering. We always like, at least for the near term, when markets are down big and finish well creating bullish tails. But leave no doubt, recent action has done a decent amount of damage to many chart patterns. So probably get some upside testing but not sure how much. Stay tuned! It is getting tougher and tougher.
The one thing we like about weakness is that it is easier to isolate strength. Really focus on the new high list here as a few internet/tech names really standing out.