Futures down a wee bit after a strong Thursday.
But not so strong was the NASDAQ/NDX/growth areas. Something to watch.
A couple weeks back, we called a report “Changing of the Guard!” We are now seeing much better action in UTILITIES, REITS, DRUGS, FOOD, BEVERAGE and other CONSUMER STAPLES areas.
We continue to see what can only be described as meltdowns in emerging markets and commodities. GOLD and SILVER especially smoked on a daily basis. Just a big bifurcated (we hate that word) market.
We also need to add, after Wednesday’s close, there were over 400 new yearly lows on the NYSE and NASDAQ and just a few new yearly highs indicating continued suspect action underneath the surface. Something that has to be watched closely continually.
The good news is that regardless of the underneath, major indices are just off the recent highs.
NVDA was down $15 after the close yesterday but now only down $6. AMAT hit…so weak SEMICONDUTORS front and center for us. DE also hit. JWN gapping up.
And TSLA down another $12 as Elon Musk does a very suspect interview with the NY Times. TSLA is now $97 or $16 billion below Musk’s supposed buyout price.
Crappy day yesterday and with a market without memory going back and forth right now…futures up nicely on blah blah blah low level trade talks in China will resume.
To get the bad news out of the way:
Wow…China, Russia, Brazil, Turkey, emerging markets and so many other countries have just continued to implode.
COMMODITIES have been mauled. Have you seen the charts of gold, silver, copper, steel and all that crap? Go look at RIO, FCX and others.
With a small break below support in oil prices, oil stocks also taken out back. Look at OIH, XLE, XOP and underlying stocks.
But the good news and in our opinion, amazingly so:
Even with yesterday’s nausea, our markets are just a couple percent from recent highs…THOUGH OUR THEME ON VERY SPLIT TAPE CONTINUES. The question is whether if there is more weakness elsewhere, will it finally take us with them. So far, aint happening.
Walmart…$10 gap to the upside equivalent to $30 billion market cap gain. Amazing story…while JC Penney continues to implode.
Cisco also with the nice gap for this megacap name.
Boeing…the poster child on trade, up nicely on hopefully lessening trade tensions.
Another morning where market has no memory from the day before as futures smacked this morning…but there continues to be some consistent action.
CHINA again smacked this morning. Emerging markets smacked…this has been going on a while and would continue to avoid.
On the other side, a select list of growth stocks continue to be way ahead of everything else. Not sure this is saying much but they definitely stick out.
In the middle is our markets…some indices near the highs, others not so strong.
Just a tougher back and forth market right now.
Would continue to go a little slower…but let’s hope our market never starts to look like FXI, EEM, EFA, RSX, EWZ, EWJ and others. (check out those charts)
CGC…a marijuana company is up 50% as STZ investing $4 billion in the company. Quite amazing.
The market continues to thin out the herd.
Forget for a second whether the market was down yesterday and the fact we will have a little gap up today.
There were many more new lows than new highs yesterday.
As we scan a couple thousand names each day, fewer and fewer remain above the 50 day average.
AMZN, AAPL, GOOG are really skewing things now. The NDX/NAZ remain the place to be. Even yesterday, the NDX/NAZ hardly budged…and this morning, yesterday forgotten.
TURKEY…we believe it NOT a big deal to the bigger picture but we are always aware of contagion especially with how much debt is in the system around the globe. Price will tell us everything.
BUT…dang…RUSSIA, CHINA, EMERGING MARKETS…so many areas in their own private bear markets. Our market doesn’t budge.
AAP and HD with gaps to the upside today.