Since hardly anyone reports this, we will:
The Treasury (our tax dollars) said net borrowing totaled $488 billion from January through March, a record for that period and about $47 billion more than it had previously estimated. Think about it. Those wonderful human beings in DC from Ryan, McConnell to Pelosi, Schumer had to borrow nearly $half trillion IN JUST THE 1ST QUARTER to fund their bull crap. But nothing here to see.
Also, the Trumpster has given extensions to certain countries on trade tariffs. We expect more of this, not less as even the President knows these tariffs are bad.
Two days in a row of negative reversals. Markets opened another Monday in a flurry only to finish at the lows of the day as the boys sold into the close. You know what that means to us. On top of that, good earnings have sold off and good earnings have reversed strong opens.
Major indices remain in the back and forth we told you to expect. You can notice NASDAQ rallied right into the 50 day before selling off.
SEMICONDUCTORS continue to swoon selling off badly throughout the day. This occurring even though they are stretched, extended and oversold to the downside. INTEL (INTC) gapped up on earnings and reversed Friday and continued down yesterday. MICROSOFT (MSFT) also gapped up Friday, sold off but still finished up…but sold off hard yesterday. AMAZON (AMZN) also reversed its big gap Friday and again reversed good gains yesterday.
We expect more of the same…back and forth, driving everyone up a wall. It is at these times you should take a step back and recognize it for what it is. As we have stated several times, after the big move of 2013-2014, the market consolidated those gains for 18 months with two big teases to the downside but both never took us into what is defined by most (20%) as bear market territory. That said, there were some rolling bear markets as the RUSSELL went into the 30s.
We continue to watch the long term support levels we have outlined for you. So far, they hold strong but every down day, every strong open only to reverse…deteriorates the technicals and adds more termites to a market that has been chipped away at.
Patience is your best offense right now.
Futures, for a change, hardly budging.