PRE MARKET NOTES

We do not rationalize why. We are of the belief that it’s not the news. It’s how the market reacts to the news. But since it is news, here is what is happening to cause the markets to jack to the upside this morning.

The supposed pro EU, pro immigration “centrist” in France will now be in a runoff with the anti-immigration, anti-EU “extremist!” Since the centrist is 20 points ahead in the polls with a May 7th runoff, the chalk is an easy win. A win basically takes a “FREXIT” off the table as well as the potential for an EU disintegration in which the “extremist” wanted. This has caused European assets to go topside which in turn is causing the rest of the world to gap up a little over 1% this morning.

On top of this news, do not forget that recently, we have seen plunging oil prices, mortgage rates back under 4% and this Wednesday, a tax reform proposal…all potentially bullish stuff.

Is 1% important? In our work, could be.

We say this because the Nasdaq/Ndx will break to new highs off the gap. Technically, very strong.

Other major indices will show strong support off the lows and back above moving averages…which in turn positions them to move out also. Remember, the 9 week pullback for the indices has been shallow though some areas have been hit harder.

So that be the deal…a chance for a 9 week topside move of world assets. Of course, recently, all strong opens have been sold into. It is a long day. But at the open, strong stuff out of the box.

 

WEEKEND NOTES

We had a sneaking suspicion it was best to wait before telling you our thoughts because there was something called a preliminary French election.  We had a sneaking suspicion it would be a market mover even though we really don’t know why. As we write this, Dow futures are up 150 points. Keep in mind, that is about 3/4%. Without going to deep, a lot is changing in Europe. The best way I can put it is that the people have had enough of the old guard lefties and their open door immigration policies as well as their kowtowing to a bunch of bureaucrats in Brussels.  As we have told you many times, immigration is fantastic. Out of control immigration? Maybe not so fantastic.

We are going to leave it at that. There is a ton of earnings to come out this week but more importantly, interested in seeing how things open tomorrow and whether it stays up if opens strong. Also, do not forget that President Trump has some sort of announcement on tax reform on Wednesday. This was announced Friday, a day after the administration would wait until August for tax proposals. Things changed overnight.

We will be back tomorrow throughout the day and after the close with the radio show and a report on how things finished. We make note that most recent intraday strength has been sold. Maybe a French election can change the dynamic.

PRE MARKET

S&P futures flat…a little better on the NASDAQ/NDX.

Keep in mind, the strong NASDAQ/NDX will be swayed by FB,AMZN,AAPL,GOOGL and a few others in the next couple of weeks but so far, it is the real strength. The Semis reasserting back above the 50 day is important.

Visa (V) mini-gap. Last quarter’s gap kept the stock in good stead and now another one. Seeing a few other small gaps in SWK, HA and PFPT. On the downside, EFII, MANH, MAT, MXIM.

Next week…A TON OF IMPORTANT EARNINGS.

Tuesday- MCD, SAP, DD, GLW, MMM, BIIB, CAT, JBLU, TWTR, TROW, PCAR…after the close…COF, CREE, TXN, KLAC, CMG, BWLD, PNRA and AAPL!

Wednesday- PG, BA, STT, STM, UTX, BEN, WHR, GT, WM…after the close… CTXS, FFIV, TER, XLNX, AMGN, MAR and FB!

Thursday- UNP, CELG, CMCSA, F, LUV, RCL, MA, UPS, MO, CME, CHTR, CAH, DPZ…after the close…SWKS, WDC, GOOG, INTC, MSFT, PYPL, SBUX, GILD, EXPE and AMZN.

Friday- CVX, XOM

Keep in mind, dates are subject to change and while we take every effort to insure accuracy of dates, dates are moved around. Please do your own checking on dates.

 

THE FUTURE OF SPORTS PROGRAMMING

SOURCE: https://www.bloomberg.com/news/features/2017-03-30/espn-has-seen-the-future-of-tv-and-they-re-not-really-into-it?cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social

MORE PRE MARKET

Gappers of note:

SHW gapping to the upside off of tight action.

Others: CSX, SCSS, AXP, BX, FL.

To the downside…URI,WR,PLXS, PM….TRV and VZ small gaps to the downside for 2 Dow stocks.

Futures remain up nicely. One of the se days, the strong open will hold but leave no doubt, we are in the midst of range-bound action. Nothing wrong with range-bound action after a move to the upside but as stated, there has been a few areas going bye-bye technically. The good news is there are still a good amount of growth names that are doing nothing more than sitting tight. Sitting tight is a good thing after a move up. We just await to see if another move to the upside is in the offing.