Futures be down. Weak Europe doing the trick.
TESLA down $38 as the SEC looks to bar Musk from serving on board or any capacity with a public company FOR LIFE. This is a WOW moment because we have seen worse where the SEC was not looking to ban for life…but we think that this violation in PLAIN SIGHT moved them to be tough. Also, the SEC moved quickly…normally it would take longer…telling us they believe this is open and shut. We told you on day one this was fraud and that if it wasn’t Elon Musk, any board would have removed him but Elon Musk IS TESLA…so a lot tougher.
Continues to be a very narrow market. We are amazed just off highs, more new lows than new highs. Also, seeing divergences in advance/declines.
We need to add the continued relative weakness in the SEMIS and now FINANCIALS. TO BE WATCHED CLOSELY.
Markets reversed down yesterday off the fed as financials led down. This is to be watched. Very poor action combined with the poor action in the semis give us pause.
BUT most indices remain fine…most. A glance at the mid caps and small caps (MDY and IWM) show both breaking slightly below the 50 day moving average. This showing under-performance in these areas. Paty attention to this.
S&P futures about flat…NASDAQ better as AAPL gets analyst bump.
Off tv today as Kavanaugh stuff front and center.
Futures are up after a good reversal for the NASDAQ/NDX off the 50 day moving average…AGAIN. This most important moving average has contained downside since late June. Many growth names held support/50 day yesterday. Some of the stronger names only pulled back to the 21 day. This keeps the market in good stead though we think this hold needs more time before things can move out.
The DOW/S&P had a pullback but see nothing untoward about it.
We do make note oil prices breaking out to new highs with a few energy names near highs. We actually put a few names on our front screen.
Again, if we can get past Sept and Oct earnings, think a decent chance of a good end of year…but as always, will handle day by day.