PRE MARKET

Good reversals yesterday. NASDAQ/NDX/GROWTH led all day. Watch that new high list to see if it expands.

Major indices sitting tight in here. Just needs a move out of range.

OILS/ENERGY indeed pulling in. We thought it was about ready.  This area got too popular and too extended.

Ten year yield back below 3% as we write this. As we have stated, not as worried about rates as others. We are still 1.5% fed funds with Europe and Japan still negative and printing.

BITCOIN continues to slowly implode. Amazed how many continue to market an ASSet that had a gargantuan climactic run and is now down 60+ percent from the highs. Other coins much worse with many of those “questionable” stocks no longer trading.

 

 

BITCOIN(S) INVESTIGATED

Why does the article say red hot market? Bitcoins and other coins continue to head south.

SOURCE: https://www.bloomberg.com/news/articles/2018-05-24/bitcoin-manipulation-is-said-to-be-focus-of-u-s-criminal-probe

PRE MARKET

A few important notes:

We have been stating for days that OILS/ENERGY stocks were extended, stretched and overbought. They finally started to come in yesterday. As of now, this is a normal pullback. We suspect yesterday’s action will also presage a pullback in the price of oil.

Our theme has not changed…and frankly, we expect it not to change right now in that January 29 was an important top while the lows of Feb, late March and early May are vital lows. Remember, after a great 2013-2014 off of QE3, the major indices went into approximately an 18 month trading range with a couple of ugly dips down during that range. We believe what you are seeing is simply another consolidation of the gains from the election to the end of January. Everything else is noise. As long as we hold those lows, this will be considered a nominal intermediate correction. Time would be the only issue. If those lows are taken out, we expect significant selling…but we continue to believe they are good lows for now.

While rates and energy prices are due to pull back…they do matter. We are amazed when anyone says they don’t matter. Lower rates have been the lifeblood for markets. Easy money has been the steroids. Money is still easy around most of the globe with Japan and Europe still negative and still printing. Higher oil prices are a huge tax on the consumer and business. Both must be watched.

Decent gap to the downside this morning. Blame is on trade talks which were supposedly going well Monday but not going well today. Blah blah blah.

TIF gapping up nicely. TIF has had decent insider buying recently. RRGB whacked for almost 20%. Never ate there. TGT also hit.

STARBUCKS…ON 2ND THOUGHT, LET’S CLARIFY THAT NEW POLICY!

SOURCE: https://www.wsj.com/articles/starbucks-says-drug-use-sleeping-unacceptable-as-it-clarifies-guest-policy-1526918854

PRE MARKET

Big gap yesterday on no trade war…but market stood still during day while NASDAQ-types pulled in. OIL PRICES continue up while the 10 year remains above 3%. OIL/ENERGY had another good day yesterday. On top of that, the dollar remains strong.

MU announces gargantuan $10 billion buyback…stock up 7%.  MU market cap is only $65 billion so $10 billion is a lot.

AZO, KSS gapping up. TOL gapping down as HOUSING remains weak off of higher rates.

Other than that, not much to complain as the market continues to repair.

HEY BILL NYE, ARE YOU GOING TO DO THE COUNTING?

I swear these people are not well.

SOURCE: http://www.breitbart.com/big-hollywood/2018/05/21/bill-nye-taxing-cow-farts-a-fantastic-thing-for-the-world/