PRE MARKET

Futures are down a wee bit after an up day yesterday. Loved yesterday’s action in growthland. Hopefully, it continues. Other areas bounced including OIL PRICES which rallied back above the 50 day but most oil stocks remain gross.

Today is fed day. They spent the last two days playing Space Invaders, Ms Pacman, Galaga, paper football and watching reruns of The Beverly Hillbillies. Today they will raise rates a whopping 1/4 point to 1.5% and then say blah blah blah incoming data, blah blah blah economy, blah blah blah jobs, blah blah blah!

Remember, most of the market is in the soup…below the 50 day but above the longer term 200 day. The positive is that after a 15 month move higher, this is nothing more than a good consolidation of the 15 months. The negative is there are still a ton of areas in poor shape…led by a very weak Europe. But as stated, very good action in growth yesterday and Financials (while buckling) continue to be mostly in shape.

As far as Facebook (FB), it is now in no man’s land…below long term averages and more importantly, may be in the cross hairs of the failed politicians in Washington.

Yesterday and Pre Market

Futures up a wee bit after a rough day yesterday!

Before yesterday:

About 55% of all stocks in our universe were below resistance and the 50 day average.  Quite a few are much worse.

There remain many bearish areas like real estate, utilities, housing, energy, oil & gas, a ton of consumer staples, a bunch of commodity names, Europe…

Many of these areas are oversold and can bounce but main trend remains down.

We have told you for a few weeks how the market has become narrower and narrower with a good portion of money flows going into the NASDAQ/NDX/SEMIS/GROWTH/TECH/INTERNET and to a lesser extent, FINANCIALS.

Yesterday, those areas were clipped. To be blunt, this market cannot afford to lose those areas. At the close, the NASDAQ/NDX hit the 50 day (almost to the penny) and bounced. We make no prediction but make a statement….it had better hold. The SOX did not get back to the 50 day, not even close. It remains strongest but still extended.

We did want to mention that small caps feel like they have better relative strength right now…RUSSELL 2000 holding the 50 day.

The XLF fell below the 50 day but nothing fatal just yet.

Yesterday was another bending day in the market. We are watching those 50 day support levels for those important areas. Most everything else is below and dealing with what we call “no man’s land” in between the 50 and 200 day.

PRE MARKET

We have been telling you that over 50-60% of the market is already in poor shape. We have been telling you the highs of Jan 29 were the highs for now (though for a moment, the NDX and NASDAQ hit new highs!) We have been telling you that the lows of Feb 9 would not be taken out any time soon. We have been telling you to expect more ping pong, meaning back and forth action without getting much headway. We have also been telling you that the NASDAQ/NDX/SEMIS were where most of the relative strength was.

We saw late last week a slight loss of that relative strength. After all, a few names were beyond extended. This morning, looks like those areas will lose a little bit more. Facebook (Fb) is the excuse but we do not rationalize. Let us just say if those areas that were leading top out…you fill in the blank.

 

 

DEBT…SLOWLY OUT OF CONTROL? NOT ANYMORE

For months, we heard how the Dow would rally another 1,000 points and another and another. We were told the next 1,000 points happened in 2 months, 6 weeks, 4 weeks. We have another statistic that longer term, is far more important. On September 8, 2017, the national debt hit $20 trillion. On March 15, 2018, the national debt hit $21 trillion. In just a little over 6 months, the bad people added another $1 trillion to our national debt…and just about no one seems to care. We say just about no one because we care. Others care but the people that matter the most couldn’t give a crap. Trump, Ryan, McConnell, Pelosi, Schumer and just about everyone in DC do not care.  Obama did not care to the tune of $9 trillion of debt. Bush did not care to the tune of $5 trillion of debt.

We watched some of the Sunday shows this weekend looking for one person to bring up the fact that in just 6 months, a whopping $1 trillion was added to our debt. Nope. All we heard was Trump, Mueller, McCabe, Russia, Trump, elections, Dems, Reps blah blah blah! The so-called leaders do not care. Why would they? After all, many are retiring to their cushy pensions and lobbying jobs. Those that stay will just blame the other side. As usual, the national media will blame one side. So just in case you did not know, the people in both parties have taken us to:

$21 trillion of debt. That’s $21 trillion spent by our government over and above what we sent them throughout the years.

This year, we will send them $3.5 trillion but they will spend $4.5 trillion.

Going forward, every day, we are adding $3 billion to our debt.

Going forward, yearly deficits will hit $1 trillion. And to all you loving Trumpsters, it is the Donald and his party that just added $300 billion of deficit spending going forward each year. The other party was thrilled.

Next year, the first $400 billion of taxpayer dollars goes towards the interest the bad people created on all that debt. That’s $400 billion down the toilet…nothing of the $400 billion towards roads, bridges, poor, elderly, children and anything that matters.

Within a few years, yearly interest payments will be over $750 billion. Don’t blink and it will be over $1 trillion of interest payments each year. And this is all happening with rigged and manipulated low rates.

There is no one left. There are no loud voices. There is one eventuality. We do not know what time. We do not know at what number. We just know the trajectory is more than ominous. The biggest con game in history continues by both parties.

But don’t worry! Everything is great again!

 

PRE MARKET

All quiet except ADBE up nicely on numbers and money loser OSTK down on big losses. OSTK ramped for a while off of coins but that is heading into the dust bin.

Notice energy rolling over at the lows. Commodities also suspect here.

No changes. Hoping for markets to calm a bit. Not thrilled with yesterday. Even when Dow was up near 300, underlying market was blah.

Enjoy your basketball.

PRE MARKET

DOW futures up a wee bit. NDX futures flat.

Just a lot of crosscurrents out there. Far past the time of throwing darts. Patterns of the DOW, NYSE, TRANSPORTS look sickly. NASDAQ/NDX/SEMIS still the bull of the woods. They had better stay strong. FINANCIALS caving in but just a wee bit. Not sweating them yet.

PING PONG. We stay with that mantra that we are in a decently wide consolidation after a 15 month romp ending late January. Nothing wrong with settling down for a while after such a move but something wrong with the many areas we have told you about that act poorly.