PRE MARKET

Strong futures today off of FB sandbagging earnings but nevertheless, earnings very strong…in the 60s with sales almost up 50%.

Yesterday, another hold of the 200 day and longer-term support. BA helped big time…arguably the most important stock in the DOW and the NYSE.

Our theme remains. Major indices still in ping pong, back and forth mode. We continue to doubt lots of upside from these long term holds but will be open to anything.

ENERGY/OIL&GAS remain strongest area as oil prices remain strong.

And we are not even close to worried like others that the 10 year yield is over 3%.

YESTERDAY AND PRE-MARKET

Every time markets are hit, internals deteriorate…simple as that. More names, more leading names are breaking the 50 day. These are the names that held up best.

Also…CAT up $7…finishes down $10. MMM down $15. LMT down over $20. GOOGL down $50 on a beat. We try to take out all opinion and just look at the facts in front of us. Facts are more and more blow-ups. Facts are major indices rolling over after visiting the declining 50 day averages. Facts are fewer and fewer names working. More and more names rolling over. Blow ups and sharp reversals do not happen in bull markets. Not like this.

Still plenty of earnings to come out.

BA reports absolute blow-out numbers and is only up $5 after being down more yesterday. BA has been the most important name to the Dow move so must be watched.

Other gaps (but nothing huge) are NSC, TWTR, STM, IR…to the downside…TER, EW, DLB, WYNN.

SEMIS will be up on the open as TXN up $4, CREE up $3…but the SOX is down to the 200 day average with the SMH below it.

The good news remains MAJOR LONGER-TERM SUPPORT has not been broken. You know our thoughts if it does break.

NDX futures basically flat….S&P down a wee bit.

ENERGY/OILS remain strongest areas.

A few COMMODITY names were acting better and then FCX reports and crashes. Says a lot.

The 10 year yield trading above 3% this morning.

UH OH!

-Listen up peeps. Serious talk today. In our weekend report we told you we did not think the market would break the lows right now but in order to break the lows, they would have to break the financials and the tech. The lows have not been broken yet but we are headed there and unfortunately, it’s during earnings season. We say unfortunately because as we always say: “it’s not the news, it’s how things react to the news!” The reactions are becoming horrid.-
-Already, the SEMIS have broken. One down! And we are now seeing a ton of other tech breaking badly. Two down! Financials are still holding but by the hair of their chinny-chin-chin. Other stuff:-
-Major indices are failing at resistance/moving averages.-
-CATERPILLAR gaps up and then cracks badly…it’s not the news, it’s…-
-The SOX at relative lows…very poor reactions in a few names. It’s not the news, it’s…-
-As we write this, MMM down $19. That’s not a typo. MMM is down $19 and all they did was guide down a wee bit. It’s not the news, it’s…-
-LOCKHEED MARTIN down $26 on numbers …say what? Taking the rest of DEFENSE down. It’s not the news, it’s…-
-Leader NETFLIX gaps up on strong numbers…drops 10% in days. It’s not the news, it’s…-
-GOOGLE down $50 as we write this and they beat. It’s not the news, it’s…-
-APPLE breaks longer term support…and that’s before earnings…as guidance has been coming down.-
-We then went on to say:-
-“Just letting you know that if it (a break of long term support and recent lows) does happen…since the major support areas have held twice right at definable long term support, we think a break would lead to waterfall-type action as the big money would be yelling that they gave in. Also, while we are not big on the “sell in May and go away” mantra, we recognize it is out there.”-
-What is “waterfall” action? This is when the big money no longer is able to hold vital support. Once support is broke, it is recognized…which leads to an onslaught of selling. No…not kidding! Wish we were. We doubt the 3rd time down will hold but will keep fingers crossed.-
-Somebody better call Bernanke. Markets may need another round of printing. (sarcasm…maybe)-
-And lastly, we say this “not politically” because as you know, we hate them all. We are in serious hopes the president takes a page from others if the market continues down…and just say, “markets go up and sometimes they go down! Longer term the markets have done quite well.” AND THAT’S ALL!-

BERNIE SANDERS PROMISING JOBS FOR ALL!

Funny…a guy who has lived off the tax payer all his life is telling people he will get them all jobs!

SOURCE: http://thehill.com/homenews/senate/384554-sanders-to-announce-proposal-to-guarantee-jobs-to-all-americans

PRE MARKET

Mushy day yesterday. We guess it was good that DOW came back but SEMIS another rough day. We are now in the midst of earnings.

CAT, UTX, VZ gap up in the DOW. MMM, TRV gap down. KO is flat from the DOW.

Others gapping up…PHM, HOG WHR, SAP,CDNS, EDU, LMT.

Gapping down…GOOGL…but only $78 on a $1070 stock…but noteworthy that it was up $50 after hours yesterday before turning down. BIIB, CNC, PII, AMTD, CVNA.

We are sure we missed a few. Futures up decently but off their earlier highs. Markets remain in the ping-pong, back and forth. Again, after the 2013 central bank-induced romp, markets went into an 18 month range with a couple of yonks to the downside during the range. This range-bound action is not abnormal. The bulls hope recent lows are not taken out. So far, the lows continue to hold. Our take is that they are good lows for now but always on watch. We continue to tell you not so sure there can be a ton of upside either.

Lots more earnings this week and next.

PRE MARKET

Futures been strengthening a bit this morning.

OIL prices down decently. We told you over the weekend oil stocks extended and overbought. Let’s see how they pull in.

Important GOOG(L) after the close. A ton of important names this week.

In the DOW…MMM, CAT, KO, TRV, VZ, BA, INTC, MSFT, V, CVX, XOM, UTX

And:

Tuesday: AMTD, FCX, HOG, GLW, JBLU, MAS, PCAR, R, SAP, SHW, WYNN, CHRW, COF, CB, CREE, DFS, TXN, X

Wednesday: ANTM, BIIB, CMCSA, GD, NDAQ, NSC, TROW, TWTR, T, CMG, FFIV, F, LVS, QCOM, NOW, XLNX

Thursday: BMY, MO, AAL, CELG, CME, DPZ, GM, GRUB, TREE, MGM, RCL, STX, SNE, STM, TSCO, UNP, UPS,AMZN, AMGN, BIDU, EXPE, FISV, KLAC, PYPL, SBUX,, SYK, VRSN, VRTX, WDC

Please check on whether pre-market or after-market and dates are sometimes changed. We left out a ton of other names.