PRE MARKET

Futures up decently.

Good day yesterday even though indices were flat.

We found a few growth names into new high ground and like how the SOX finished. On top of that, the weaker BIG FINANCIALS seem to be repairing.

We continue to believe the onus is now on the bears to show up with their selling. The last time, they were able to take the indices back down to the lows AND AGAIN, for the 3rd time, the lows held.

OIL PRICES are up strong again this morning. OIL STOCKS are going along for the ride. Negative reversal Monday, positive reversal yesterday with a strong open today.

UTILITIES, which have been bearish for a while but drifting higher, look like topped badly yesterday…which means watch BONDS again. We suspect bonds are going to turn down again.

Even though markets moved around on the Iran news, we do not think it is a big market mover.

Gaps this morning are TWLO, TM, GDDY, TRIP, EA to the upside. MNST, PLNT, CTXS, PZZA, AAOI, MB to the downside.

 

I SAID THE AIRLINES COULD NEVER GET AWAY WITH CHARGING FEES!

SOURCE: http://www.dailymail.co.uk/travel/travel_news/article-5704413/US-airlines-pocketed-record-4-6billion-baggage-fees-2017.html

PRE MARKET

Except for not thrilling volume. no complaints here as market tries to improve off of its latest hold of longer-term support. We remain of the thought support will not break any time soon but don’t blink. A couple bad days could change that.

Futures down just a wee bit and off the lows. Always find it interesting when a stock ramps right before earnings. Seeing some of that as some bold analysts upgrade right before.

Important earnings rest of week are :

EA, GDDY, MAR, OXY, DIS today.

Tomorrow: BKNG

Thursday: NVDA

WEEKEND NOTES

We repeat from Thursday’s action:

Thursday was another classic reversal but not just any reversal. It happened again at the VITAL LONGER TERM SUPPORT AND 200 DAY MOVING AVERAGE.  Reversals like that usually lead to upside testing.

We add from Friday’s action:

Quiet morning action led to buyers finally showing up and short sellers covering.

The DOW and S&P both touched the 200 day in the morning before ramping.

The SOX also ramped off this important level. You all know how important the SEMIS are to our work.

FINANCIALS undercut Thursday, reversed  and then rallied on Friday. They are still not showing much “ooomph!”

All major indices are back in range but the NASDAQ/NDX most definitely showing best strength, back above the 50 day moving average.  Just keep in mind the influence AAPL, AMZN, NFLX, BKNG have on these indices.

This is the 3rd retest of the long term support/lows.  It “feels” like a better move could come off the 3rd test especially with the NASDAQ/NDX/GROWTH showing strength…but do not blink. After the wild swings we have been seeing, both daily and intraday, we take nothing off the table.

OILS/ENERGY continue to be the best strength but remain extended. OIL PRICES still going up so expect another 10-20 cents at the pump soon. Sorry!

A bunch of RESTAURANT names have moved out to new highs. SHAK and WING are the latest. CMG is putting in a flag after its strong move.

Keep in mind, loads of resistance on any further attempt to move up but the tone is feeling better even though we are just off the lows.

 

SHORT NOTES ON MARKET

After the close yesterday, we were convinced ANOTHER near-term low was put in on ANOTHER reversal at gargantuan, important longer-term support. We then added our usual recent worry about how far a reversal can move the market higher. After all, so many names and areas are not in very good technical shape. After all, volume was light yesterday giving us the thought it was not a real washout. But for the 3rd time since early February, the big money defended. Enter this morning. Markets did not open too well…but reversed quickly. And then at just after 10, with sellers gone, buyers got the upper hand. Notwithstanding a reversal of a reversal (we have seen that before and it is early in the day), it looks like another good A LOW is being put in. It’s not just the major indices holding support areas but also the important SOX as well as many other groups. BIG FINANCIALS undercut support but are quickly back above. Keep in mind the big picture remains the ping-pong, back and forth action we have been telling you would occur. We suspect much more time in the range that has been carved out since the highs of late January .Let’s just hope that after a 3rd failed try to break those important support levels that this turns out to be THE LOWS. Will need a few more cards coming out of the deck but a good start nevertheless. And APPLE (AAPL) into new all-time highs does not hurt the cause. Yes, it is that important a bellwether. And yes, all happening after a bunch of analysts lowered numbers and downgraded the stock. More coming in our weekend report.

 

PRE MARKET

Nice reversal yesterday but to us, less than meets the eye. Volume was light not indicative of a great washout but the good news is that longer term support continues to be just that, supported by the big money. But after scanning 2,000 names, not impressed. Will leave it at that for now.

Of note:

Fake jobs number less than expected. The 3.9% an outcome of people leaving work force. Wages were up decently.

Mnuchin and the rest in China getting nothing done on trade just yet. As we told you, we did not think China was just going to lay down. More to come on this but really think Trump and the rest need to be more careful with rhetoric on this one.

Futures down a wee bit Buffett bought a bunch more AAPL so that’s getting a bid. AAPL bought back a whopping $27 billion or so in the fist quarter…at least that is what we are reading.

And lastly, we found many more earnings blow-ups during our scans. Remember, so many blow-ups do not occur in bull markets.