GOLD AND SILVER

Holy hell Batman. Both gold and silver in new yearly lows again this morning. The amazing part of the equation is that this is going on while there is supposed turmoil.

We just want to repeat…price is everything…noise is meaningless. Gold and silver remain in a bear market. The definition of a bear market is that something just keeps going lower and lower in price regardless of what many think. We are sure gold and silver will eventually have their day in the sun again. It’s not here yet.  Sorry gold bugs.

PRE MARKET WHIPSAW

Futures were down decently overnight and then this:

“Turkey Central Bank says it will provide all the liquidity the banks need!”

Look familiar? Feels like Bernanke is back. When easy money causes all kinds of problems, just make money even easier until bubbles are created.

S&P futures up a wee bit with NAZ futures better but you get AMZN, GOOG, AAPL up and that’s all you need.

Turkey’s problems come from gorging on easy money and taking on debt that will never be paid back. JUST LIKE OUR $21 TRILLION. But we can just print.

We just watch price and price dictates to continue to avoid emerging markets like the ones we have mentioned for weeks, if not months. Turkey just happens to be in massive free fall…stocks and currency with interest rates skyrocketing. TUR has dropped from $46 to $19 just since February.

WEEKEND REPORT

While everyone is reporting, yapping or talking about Omarosa, secret tapes, Charlottesville, Turkey, Turkish Lira, Turkish Taffy, kneeling, Elon Musk and his clear lack of ethics if not more, Tesla, socialism, socialist dolts, Chicago shootings, hijacked planes, Kanye, Russian economic wars, asinine tweets and the crappy Mets…not that any and all is important… we just wanted to remind you in the last week (because no one else will)…another $21 billion was added to tax payer debt, spending on interest payments on the federal debt hit another record high, budget deficits continue to soar into the $1 trillion+ category and global debt hit another record high at a measly $247 trillion. But do not worry. They have us covered. They are making things great again. Of course you know who they are.  They are the ones who are screwing the American public solidifying their power with OUR debt! And unfortunately…it is all of them on both sides of the aisle, yet we keep electing them.

But as long as markets are acting fine, everything is well. Shorter term, we reported the churning on Thursday, thinking a pullback was close at hand. Friday’s gap to the downside ensured it. We have been of the mind that any pullback will be controlled and rotational but with such a news-driven market, anything is possible. But for now:

On the good side:

All major indices remain above the 50 day average. Nothing bad can happen above.

RETAIL acts very well.

A slew of growth names, especially some bigger names with big index influence continue to work very well. Amazon, Apple and Google come to mind first. We cannot begin to tell you how much influence they have.

FINANCIALS, while in pullback mode here, have been a big help recently.

While we are not the biggest fans of advance/decline figures, most were at all-time highs this past week before pulling back.

10 year yields continue to stay under 3%.

China easing like Bernanke is running the joint.

Europe and Japan continue with negative rates and continue to print money.

On the neutral to negative side:

This remains   (and has been that way for quite a while) a very split tape. We still cannot count more than 50% of the market working. In a broad-based market, this number goes into the 70s and higher.

Foreign markets overall…quite neutral but it is clear negative that emerging markets, Russia, China, Brazil and a bunch others act horrid.

SEMICONDUCTORS as a whole…neutral but many names have broken down. Something to watch closely.

The fact that it is still less than a 50-50 market while indices are near highs indicates just how narrow things are. Narrow markets are easier to sell off when the overall weakens.

There were more new lows than new highs on all indices late in the week. This again is an amazing number indicating how narrow things are but also how, underneath the surface, how much weakness there still is.

Lastly, a question asked of us: “Gary…if you were the regulators, what would you have done about Elon Musk and how he handled Tesla?” Our simple answer is that we would have stopped trading and kept trading halted until we received a straight up answer. We are amazed how the screws have not been put to a man who went against all Wall Street protocol, all Wall Street ethics and we don’t think arguable, a damn good case for a serious securities violations. We are happy that they are investigating but this all smells real bad. And yes, we think the man brilliant but that has nothing to do with right and wrong.

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MORE EARLY NOTES

TTD big gapper to the upside this morning. Been a leader and now…even more.

Turkey (TUR) going to get whacked even more this morning as the Trumpster puts higher tariffs on them. Don’t piss off the Trumpster. When you have a chance, go google what is going on in Turkey, economically and politically. The Turkish Lira has been in free fall.

We have been mentioning that quite a few SEMICONDUCTOR names were acting poorly with a few names still acting well. MCHP gapping down this morning and weak INTC downgraded. We always watch this group.

Not hearing much else on TESLA this morning but to be blunt. There had better be a real offer at the $420 or else.

Lastly, please remember more than 40% of the market has not participated…thus very narrow. Narrow is not a good thing. Always would rather have more broad based moves. Foreign markets also continue to under-perform.

PRE MARKET

Yesterday, on our very popular, award winning radio show, we simply stated we thought the market got pooped out in late action. We stated we thought a pullback was at hand but thought any pullback will be controlled and rotational. What we saw? Simple…a narrowing of advancers, a couple of days of churning (no progress) and than the late sell-off.

We walk into a decently down open. Again, at this point, any pullback will most likely be controlled and rotational. The good news is that any pullback gives us a better view of leadership. Can a pullback turn into something worse? Of course it can…but one step at a time. And of course, in these markets, we have seen a bunch of early ugly bought up so anything possible but odds favor some time and price here.

 

 

PRE MARKET

Futures flat as flat can be.

YELP,SAIL,CVNA,AYX,ROKU,GOOSJACK, IAC, NCLH gapping up.

BKNG down a measly $150. STMP down $36.

We love quiet markets. It elongates bases and sets things up better. Will take a couple of weeks of this.

No more news on TESLA this morning but make note with the stock at $365, there is a $55 discount to Musk’s tweet price.

 

THE OPEN

We will have more on Tesla later but you can hear my thoughts on it from radio yesterday at www.garyk.com.

Stocks are flattish this morning on the open.

We do not have a lot of complaints on the market here. For sure, still areas not working but charts of the indices look fine. Just a little overbought say may settle down some.

Good reaction this morning to KORS, MTCH, INGN, CYBR, AAOI.