Futures down decently this morning.
REMEMBER, we are watching financials to see if any other cracks in the armor show up. We are now in the 5th week of pullback/corrective work. So far, it is nominal but financials remain under the 50 day and remain on the soft side. Bulls do not want to see another leg down. Also, auto everything, except TESLA, are getting hit hard.
The good news is a slew of growth names act well..either continuing to move higher or just sitting after recent moves to the upside.
URBN and KATE hit this morning as retail/apparel remain horrid.
Good comeback by the market as financials stopped the ugly, reversed a bit and of course, the market followed. But the Russell was down the equivalent of 200 Dow points and areas like autos, auto parts, auto parts retail are crumbling. So…fewer and fewer stocks and stuff working…so pay attention. Pay close attention.
We have been telling you for about two weeks about our worry with the recent action in financials. They are being distributed with in our eyes, near term bearish patterns. We bring this up because since the election, financials led the market up. It is not a reach to say if they head lower, they can lead the market down. Today is another case in point. As we have said, a bunch report Friday and then next week. Stay tuned but so far, not thrilling. This does not mean the end of the world. Financials have had a big run and deserve a rest. But these markets do not usually have a gray area of trading. It’s been feast or famine. Again…stay tuned.
Futures up a wee bit.
We are watching closely here as we enter earning’s season…especially financials. On Friday, C, JPM, PNC and WFC report. The reactions will be important as financials have had some distribution recently. Since they have led up, we have to watch if things worsen, will they lead down. So far, nothing more than a little rest and pullback for the markets.
TESLA (TSLA) the story this moring…up $9 as they announced a big increase in year over year sales.