A FEW FACTS:
Just about everything has rallied up into, near or on massive overhead resistance where markets had a “waterfall” breakdown or the declining 50 day moving average. In bear markets, this is where or around it is normal to fail…or start failing. This means we would get another topping process of a few days/couple of weeks before rolling over again. Notice we did not say definitely. We let cards come out of the deck. This could just pull back here.
We are now in earning’s season. We have no idea who says what and have no idea to the reactions. But we now sit back and react to the reactions. We never jump the gun. This week, about 25 FINANCIAL names report. It is vital for them to act well. They have rallied up but still no ooomph. Also, the SOX got above the 50 day Friday but finished in the mid-point. There is no way markets can go higher without these two groups so we keep a close watch on them. In the SEMIS, the only real strong name has been and still is XLNX. Everything else is just in recovery mode off of big drops…some stronger than others. If the SOX doesn’t hold the 50 day, trouble.
Markets gapping down this morning. Very weak economic numbers out of China continue. CITI also down on numbers with another blow-up in RETAIL land in TLRD.
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *