IF YOU STILL ARE SMOKING, READ THIS WATCH THE VIDEO!

SOURCE: https://nypost.com/2018/05/03/another-reminder-that-smoking-absolutely-destroys-your-lungs/

PRE MARKET AND TESLA

Futures are down decently after an ugly reaction to the maniacal Fed. Remember, every time markets go lower, internals go south…and you do not want to see internals go south as indices are again heading towards vital long-term support. You know what we think can possibly happen if that occurs. Watch them FINANCIALS closely. They break and yikes!

TESLA…we have stated for a long time that if TESLA was selling steel pipes, the stock would be 50-75% lower. Some facts:

TESLA has never made money on a yearly basis.

TESLA has done 3 secondaries in recent years.

TESLA lost $1.7 billion in the past 4 quarters.

TESLA has missed targets.

TESLA bonds have sold off. We were amazed when they were able to float bonds at 5.3%. Should have been 8%. The bond’s ratings have been downgraded.

According to our abacus, TESLA has 40 million shares short.

At the close yesterday, TESLA market cap was the same as GM even though GM does 12x the sales of TESLA.

TESLA will need to raise more capital.

TESLA’s head honcho, top dog, big cheese would not answer some of the analyst’s questions on the earning’s call yesterday.

NORTH KOREA CONTINUES TO MAKE NICE NICE!

SOURCE: http://www.dailymail.co.uk/news/article-5682471/Three-Americans-detained-North-Korea-moved-RELEASED-mark-historic-summit.html

THE WORLD CONTINUES TO GO NUTS!

Can’t even wear a dress one likes without the pc police knocking down the door!

SOURCE: https://www.usatoday.com/story/news/nation-now/2018/05/01/chinese-prom-dress-draws-rage-but-utah-student-said-she-meant-no-harm/567846002/

FIX THE FREAKING VA!!!!!

SOURCE: http://losangeles.cbslocal.com/2018/05/01/va-hospital-flies-surgeries/

PRE MARKET

Nice reversal yesterday…led by the SEMIS. We wrote to you in the middle of the day that something was up. But the SEMIS are just oversold and like many other things, defending the ALL-IMPORTANT 200 DAY AVERAGE.

APPLE (AAPL) is up $6.50 this morning as we write this. It was up almost $4 yesterday. Numbers were good but we think like prosecuting attorneys here. Apple announced a $100 billion buyback…which is over 10% of the market cap. Shouldn’t the stock be up much more? Just asking.

Leader MASTERCARD (MA) gapping out of a short base on very strong numbers. Other decent gaps are SFLY gapping out of a base. ZEN gapping out of a base. Both have held nicely at the highs.  ADP, LITE. On the downside, SNAP,  CHRW, YUMC, YUM and leader PAYC gapping down.

S&P futures down a wee bit. NDX futures up a wee bit…even with AAPL up nicely.

 

THE SOX SAVING THE DAY

One of the worst groups recently has been the mega-important SEMICONDUCTORS (SOX). Today, it has been showing relative strength from the get go. When the DOW was down 350 at its lows, the SOX was flat to up. This enabled the NASDAQ/NDX to also outperform the DOW markedly today. When you have a second, go look where the SOX is and for that matter, go look where the DOW was at its lows….THE LONGER-TERM 200 DAY AVERAGE. Do you think the big money doesn’t know this? A rhyme and a reason. Protect at all costs. Of course, there are almost 2 hours left as we write this and of course, the almighty IPHONE maker reports after the close.

WHAT’S ANOTHER $488 BILLION OF DEBT?

SOURCE: https://www.bloomberg.com/news/articles/2018-04-30/treasury-s-488-billion-in-borrowing-sets-a-first-quarter-record