FINANCIALS will bounce today off of the fake stress tests. This enables some to raise dividends and buybacks….which indeed, some have already announced. FINANCIALS undercut support but will open on support this morning.
End of quarter, oversold, massive put buying and important support levels won the day yesterday and continue this morning.
We have been telling you all week that it was end-of-quarter window dressing week. Of course, window dressing is illegal so does not happen. It finally hit yesterday and right where it was needed.
The NASDAQ 100 to the penny…and we mean to the penny…at the 50 day moving average. The NASDAQ right at the 50 day average. The RUSSELL just above. On top of that, there was massive put buying (the wrong way crowd) AFTER the recent drubbing. Digging deeper, many growth names pulled right into the 50 day and bounced. And lastly, the worst of the worst, emerging markets and other countries were due to bounce after mini-meltdowns…thus the bounce.
The DOW will open back at the 200 day with the S&P at the 50 day.
The question is how well and how long the bounce goes. Answer…don’t know. But it enables us to see which names are really the strongest, the strong and the not so strong.
This does not change that more than 50% of the market is in bearish mode of different levels depending on which sector you are looking at. It does not change the overall bearish look on all those other countries.
For now, the end-of-quarter bounce.
Lastly, AMAZON (AMZN) continues to take over the world. Bezos is amazing.
The DOW had a chance to hold the 200 day. The S&P had a chance to hold the 50 day. In fact, markets were very strong out of the box yesterday…but that big reversal changed it up.
AS WE HAVE TOLD YOU, more than half the market was already in different stages of bearishness with many other countries in dire straights. The question was which side would blink. Would the worst turn up or would the divergences lead to the best coming down. Unfortunately, they are now coming after the strong stuff.
On top of that, the financials are breaking the important lows we have talked about, the semis are melting down, foreign markets just worsen and the Mets still suck.
Whatever is going on is going on. Be very careful of the normal “everything is ok” talk as the market has never cared about opinion. The big money, institutional crowd votes not with opinion but with their selling or buying. They continue to be sellers as markets have deteriorated….especially around the globe.
Near term, maybe, maybe not we get a bounce. We are still in the end-of-quarter window dressing period as well as pre-holiday. Usually, this week is supposed to have some seasonal strength. So far, ain’t happening.
Lastly, our theme on the “coins” continues to come to fruition as they are now taking a “slow death” move down below support. We continue to be amazed as to how many charlatans are still out telling us to buy even though the “coins” are down 70%+ with many much much worse. Remember, these are the same people that told us price would go to $100,000 with one predicting $1,000,000. We still haven’t heard one logical explanation why these coins have any benefit economically.
Personally, always thought why people were forced to give. What happen to free will?
Never mind. Yup…never mind. The president changed his stance on China. The president will not be as harsh on China. What happened? Markets were going down. Yes…they are listening to me. We have stated on radio and tv that their stance on China and the rest of the world would hurt markets. If markets went down, it would affect elections this November. Yup…let’s make decisions on the stock market. Ladies and gentlemen, meet Trump the politician.
Futures went from down DOW 200 to up. NASDAQ went from down 90 to up off of this news. In this case, we like what the president did. We completely dislike making decisions off of market moves. Just don’t blink with this president. Tomorrow is another day.