PRE MARKET

Futures are down a wee bit…just because.

The Fed will announce no move today…blah blah blah…

Apple (AAPL) down less than $1.50 after earnings came out. Market now looking at the next iphone. Actually surprised not down more.

Gaps to the downside this morning: ETSY, TWLO, IPHI, AKAM, LCI, DXCM, VRSK

Gaps to the upside: PAYC, WTW, FEYE, DLPH.

Wish we had more words for you. Markets still not correcting though some areas are in deep corrections like energy, commodities. A lot more earnings to come out but most of the important names have reported. Facebook (FB) after the close today.

Also: Don’t know what Republicans are up to. Terrible “same as usual” budget. Another healthcare vote? Not sure they are on their game. Lots of talk. It’s still early.

We don’t usually pay much attention to the VIX but:

SOURCE: http://info.convergex.com/hubfs/Convergex%20Morning%20Briefing%202017%205%202.pdf?utm_campaign=Morning%20Briefing&utm_source=hs_email&utm_medium=email&utm_content=51397036&_hsenc=p2ANqtz-_c4P221xZ4xplJ1bgJIOYpd_1PNAjesGOxuoWNumHkv-0sASI5mMWsiHuo8B-kOiOFiLdZZ0F9SojPF0Ao9aYy9jszdg&_hsmi=51397036

THE CLOSE AND PRE MARKET

We really do not need to mince words here.

While the S&P consolidates under the 2400 area, THE BIG-CAP TECH/INTERNET remain en fuego. Simple as that. We can tell you that this kind of narrow leadership ultimately is not good but we would rather tell you this is the place to be until it isn’t.

3 big names remain…FACEBOOK, APPLE and PRICELINE. Otherwise:

GOOGLE gapped up on numbers and acts well.

AMAZON gapped up but got distributed the same day…but the next day (yesterday) ramped into a closing high.

NETFLIX acted poorly on earnings…turned around immediately and broke out of a tight range.

ALIBABA just keeps ascending.

PRICELINE breaks out of tight range and hasn’t looked back. Earnings next week.

FACEBOOK reports this week. Just ascends.

APPLE moved above another short range but earnings out today.

On top of this, while it is no longer A-Z in semiconductor-land, the SOX looks in good shape still.

We are not advocating buying, selling, shorting or covering any of these names. Many are extended. We are just pointing out these areas continue to be strong. Some names have reported. A few more are about to report.

We also wanted to make note that Jack Dorsey, the CEO of TWITTER just bought almost $10 million of his stock in the open market , after earnings were reported and the stock having a positive reaction.

Continue to avoid everything energy/oil &gas, most commodities, anything auto, big retail and while financials have stopped going down, need to see better leadership out of them before giving the green light again.

Philly Soda Tax Kills Jobs!

Raise taxes=repercussions!

SOURCE: http://www.philly.com/philly/business/Coca-Cola-says-Philadelphia-soda-tax-has-led-to-loss-of-40-jobs.html

PRE MARKET REPORT

This week’s earnings:

AMD, AAPL, DNKN, DLPH, FB, GILD, HLT, MA, MRK, MLM, PFE, QRVO,  SHOP, TSLA, YUM.

We would suggest AAPL, FB and TSLA are of import.

Futures up decently this morning as big-cap NDX-types continue to win the day. The S&P building a nice cup and handle pattern but needs a move above 2400. The Dow looks the same and needs to move above 21,070. Lots of gappers off of earnings and now will look for secondary buy points in them. Names like GOOGL come to mind.

We hear there is a Fed meeting this week.