KEEP TRYING HIGHER MINIMUM WAGES! THE SHAPE OF THINGS TO COME!

SOURCE: https://www.geek.com/tech/400-burger-per-hour-robot-will-put-teenagers-out-of-work-1703546/

THE CLOSE

Another terror attack in London. Terror attacks in Nigeria. Terror attacks in Mali. Continued investigations on Trump. 24/7 shreeding of Trump by the media. The Mets are injured. The Knicks stink. But…the market hits new highs and most importantly, THE NASDAQ/NDX hold the 50 day/10 week moving averages on a gap like a trooper. This matters big time to us as these areas have been the leaders.  It feels like the juice is flowing again as just about all the leading growth names held areas of support that usually hold during bullish phases. Markets are never going down again. (sarcasm)

PRE MARKET

-We are reprinting our weekend report for the pre-market but adding in the big pre-market move this morning:

-Tale of the tape:

-The DOW and S&P edge higher sitting about 1% above the March 1 high. The DOW is a wee bit stronger.

-The NASDAQ/NDX hold the 10 week/50 day average after the 6/09 yonking. We are not so sure the ugly is over. Lots of near term damage has been done but again, most important names continue to hold the line. The same for the SOX. We just think there is a decent chance more time and price is going to be needed. NEVER MIND! THIS MORNING, WE ARE SEEING NO NEWS. WE ARE JUST SEEING A BIG GAP ON THE NASDAQ/NDX-TYPES! THIS IS SIMPLY THE BIG MONEY DEFENDING THIS ALL-IMPORTANT AREA RIGHT WHEN THEY NEED TO. A GLANCE AT MANY LEADING NAMES WILL SEE HIGH VOLUME DROPS DOWN TO THESE LEVELS. WITH THE OPEN, LOOKS TO BE A STRONG AND TIMELY HOLD. ..THAT’S IF IT DOES NOT HAVE A BIG, UGLY REVERSAL TODAY.

-Much improvement in the Transports as they are now in one giant base going all the way back to December 8. Recent strong action in FDX on the breakout as well as the rails.

-The Russell 2000 has improved but remains range-bound. One could also call it a big base as it sits 1% higher than the December 9 high.

-Recent strength showing up in INSURANCE and INDUSTRIALS. Seeing breakouts in symbols like IR,ROK,PKG and others.

-We remain bearish on a slew of areas. Namely ENRRGY, COMMODITIES, BIG RETAIL, AUTO everything, DRUG STORES, SUPERMARKETS. Seeing new breakdowns in AUTO EQUIPMENT and anything AMAZON purchase of WHOLE FOODS-related…and that includes FOOD.

-As far as AMAZON, we think this is a move about getting approximately 450 new distribution centers and the real estate. We suspect  it would have cost a heck of a lot more to buy independently. Many are calling for a complete shake-up of the supermarket industry. Amazon has been a disruptor in the past so wouldn’t put it past them.  We also suspect someone may come in and bid a higher price in order to keep Amazon away from this move.

 

WEEKEND REPORT

Tale of the tape:

The DOW and S&P edge higher sitting about 1% above the March 1 high. The DOW is a wee bit stronger.

The NASDAQ/NDX hold the 10 week/50 day average after the 6/09 yonking. We are not so sure the ugly is over. Lots of near term damage has been done but again, most important names continue to hold the line. The same for the SOX. We just think there is a decent chance more time and price is going to be needed.

Much improvement in the Transports as they are now in one giant base going all the way back to December 8. Recent strong action in FDX on the breakout as well as the rails.

The Russell 2000 has improved but remains range-bound. One could also call it a big base as it sits 1% higher than the December 9 high.

Recent strength showing up in INSURANCE and INDUSTRIALS. Seeing breakouts in symbols like IR,ROK,PKG and others.

We remain bearish on a slew of areas. Namely ENRRGY, COMMODITIES, BIG RETAIL, AUTO everything, DRUG STORES, SUPERMARKETS. Seeing new breakdowns in AUTO EQUIPMENT and anything AMAZON purchase of WHOLE FOODS-related…and that includes FOOD.

As far as AMAZON, we think this is a move about getting approximately 450 new distribution centers and the real estate. We suspect  it would have cost a heck of a lot more to buy independently. Many are calling for a complete shake-up of the supermarket industry. Amazon has been a disruptor in the past so wouldn’t put it past them.  We also suspect someone may come in and bid a higher price in order to keep Amazon away from this move.

AMAZON BUYING WHO?

Amazon is buying Whole Foods Markets…for $42 cash ($13.7 billion). Beats the hell out of us! Amazon stock originally down $15 on the news is now up $16. Wal Mart, Target, Costco all down decently on the news. We understand Amazon wants to deliver everything including babies being born…just not sure what this means. Will defer to Bezos as he has done almost everything right.

PRE MARKET

We cannot tell you how important it is to watch the moving averages for the NASDAQ/NDX and the names that have led in that space. Most all in pullback mode towards moving averages. Will be vital to hold. A break below would not help. The good news, again, money flows have found lower beta areas…but to be clear, not sure that lasts. Also on the good news front, Dow/S&P just sitting nicely not being affected by recent drop in tech/interent/semis.

Futures up a wee bit. Nothing standing out as not much in the way of earnings.

Next week: LEN, ADBE, FDX, KBH, RHT, ORCL, ACN, BBBY, BBRY.

THE CLOSE

Specifically, the NASDAQ/NDX/SEMIS remain under some pressure but let us take the good side of the coin. All have pulled back to and near their respective 10 week/50 day moving averages and so far held. The SEMIS are the stronger of the 3. On top of that, our proprietary list of strong growth names show harsh pullbacks but just about all are still holding those support areas. We will now be looking to see whether they hold or not. The rest of the market continues to outperform. Remember our theme about the CHANGING OF THE GUARD. It continued today as lower beta, industrial-types winning the day here. We are watching about as close as possible because if leading growth names hold these areas well, there will be another play out of them.