MIDDAY NOTES-COMPLEXION CHANGING!

This weekend, we told you something was up with big cap tech/internet and all that stuff. Some of the major players were acting suspicious. Suspicious just turned into some serious selling, at least for those favored/glamour areas. As we write this:

The NDX easily sliced through the 50 day average that we outlined for you at 5911…and now the NASDAQ has sliced through at 6361.

Names like FB also easily sliced through the 50 day/support…amongst others.

The complexion be changing ladies and gents.

Money flows into Gold (GLD)  which bounces right off the 50 day/support. Money continues to flow into OILS as energy prices continue higher. Besides that, mostly yuck! More on this tonight.

 

PRE MARKET

Dow futures down a wee bit but NDX futures down decently. To get more specific:

AMZN remains on defense trading below the 50 day average after disappointing Wall Street. A break below $936 makes things worse.

AAPL  remains on defense as worries over the new I-PHONE continue. The stock broke the 50 day on heavy volume this past Wednesday and nothing good since.

GOOGL trades just below the 50 day. Been acting better but that only means it has held up. Needs to jump back above. Next support is important support at $915-$918.

PCLN trades below the 50 day and showing no accumulation so far.

TSLA has been wide swinging recently. Last week’s late action was not thrilling. The stock may be showing a big double top. Really needs to hold the 50 day here and more importantly, the $330 level.

I have brought these names up because of their big influence on the NDX as well as a little bit of the market. It is less than thrilling how they are trading…but the good news, other stuff is working. Refer to the weekend report.

OIL PRICES up again this morning. Energy shares continue to have a relative bid here. We would suggest overbought in here.

 

WEEKEND NOTES

Still, nothing in the way of even a 3% correction. Major indices, for the most part, remain in good shape.

The DOW and S&P”s breakout from early last week remains intact.

The NASDAQ and NDX remain in shape but we are now seeing some mega-cap names causing a little bit of lagging here. Names like AAPL, AMZN, PCLN and GOOGL have worked against but not so much just yet. The NASDAQ needs to break above 6477, the NDX needs to hold the 50 day at 5911.

But past lagging areas continue to catch up. The TRANSPORTS have come up the right side in a hurry on the back of FDX, RAILS, TRUCKERS. Many say this is hurricane-related. We don’t care why.

On top of that, the small caps (RUSSELL 2000) are almost at new highs. Leave no doubt that the stronger action in the ENERGY has helped out a lot.

Other notes:

ENERGY is indeed stronger but very mixed. While a few names are at highs, a lot of names are still near lows. Stronger names COG,CVX, HFC,PSX,RDSA, SU, TOT.

SEMIS remain in shape. They continue to lead up or down.

The big FINANCIALS got a bid last week as long rates backed up. C remains the strongest names with others just back in range. The REGIONALS not so much but better.

The INDUSTRIALS (XLI) continue to move out with many cyclical and deep cyclical names breaking out in groups like CHEMICALS, PLASTICS, PAPER, WOOD PRODUCTS and stuff like that.

With rates backing up a wee bit, UTILITIES and CONSUMER STAPLES have been rolling over. These are the most defensive of areas.

We continue to be asked about how markets here refuse to correct in a meaningful fashion. To be boring and to repeat…markets are the benefactor of the most easy money largesse in the history of the world. Simple as that. Europe and Japan are still printing trillions and have negative rates. Many other countries are the same or near 0%. We really don’t matter any more but in case you wanted to know…we are still around 1%.  This is still out of bounds easy money. We also know you are hearing Yellen will start rolling back some of the $4.5 trillion of printed money here. Maybe they start, but they are starting nominally. They will never be able to roll it all back as Yellen has already telegraphed that if markets get into trouble, she can just start printing again. Yes…SHE SAID THAT!

 

PRE MARKET- AND BIOTECH BLOW UP

Quiet! But again, market refuses to budge. Any weakness is sopped up. EASY MONEY RULES! Yellen stating she will roll back QE is laughable. Already said she would reprint if markets fall. Really?

VSAR…as this is written, the stock is trading at $3…down $18.60. That is not a typo. Another BIOTECH with no sales with a ridiculous market cap that is trying to develop drugs that in trials, the —-did not work. Just a reminder…pick your poison. Know what you are getting into. Know risk. Measure risk. Of course, there have been plenty of “no sales” biotechs do well. In fact, we have seen a few of these names bought out. We are just giving you a head’s up!

 

Been one hell of a week. Would like to complain about not having power for 9 days but had a tiptoe through the tulips compared to many others. Full report over the weekend.

PRE MARKET

Very quiet early.

GOLD/SILVER continue the yonking as DOLLAR strengthens off of Yellen blah blah blah.

TRANSPORTS really coming on as RAILS/TRUCKERS and other stuff on the move.

Industrial-types also on the move…some say because hurricane…some say just because.

More later!

THE CLOSE

New stuff hitting the screen.

The lagging TRANSPORTS maybe no longer lagging. Truckers, rails breaking out.

INDUSTRIAL-types…packaging, equipment, chemicals, machinery, construction and all that stuff. Many saying the reason being is the rebuilding after the hurricanes. We dont care why!

OILS continue with the better bid as oil prices continue higher. Actually seeing a few names into new yearly high ground. Keep in mind, most are closer to yearly lows.

On the other end…continued weakness in GOLD over past few…also includes SILVER.

UTILITIES break the 50 day.

CONSUMER STAPLES also not so good.

And RETAIL continues to be gross, with few exceptions. Latest disaster is BBBY.

As far as the Fed…blah blah blah blah blah.