PRE MARKET

The big story yesterday was the NASDAQ/NDX holding the 50 day average again…almost to the penny. The same thing happened at the end of June. This time led by AAPL which gaped and continued up. On top of that, AMZN got going again. Even the worst reactors like FB, NFLX and TWTR bounced enabling the move.

Unemployment is 3.9% this morning. Futures flattish. Lots of jello moving on the plate off of earnings. Seeing an amazing amount of blow-ups as well as gaps to the upside.

Full report on the weekend.

PRE MARKET

Bad open this morning…can blame it on tariffs or just that last week we thought that TECH had topped for now as we go into the crappy Aug/Sept period. Either way, ease off the pedal.

We have to make note that about 2-3 dozen growth names that were trading above support/50 day avg have now broke below. Some like FB and TWTR have been squashed. This is not a great sign for the market. And this morning, we have W, HUBS, TRIP gapping down…another 3 names that were strong. SQ is down but not a ton.

We reiterate…more patience and continue to believe value now outperforms growth.

As far as Trump…HE HAD BETTER BE CAREFUL BECAUSE HE IS TAUNTING MARKETS WITH HIS CONTINUED TARIFF THREATS.

PRE MARKET

Eyes are on Apple (AAPL)…gapping up this morning on strong numbers…but in recent days, we have seen a ton of growth blow-ups. Even AMZN and GOOG, which gapped up on good numbers, sold off.

Futures flat on the S&P but up on the NDX because of AAPL. Strong gaps this morning in MOH, PAYC, SODA, ZEN.

Ten year back near 3%.

PRE MARKET

More of a tech wreck yesterday. Many are out saying it is nothing…it is a blip…just buy. That’s fine. We hope they are right. But evidence in so far is the big money is now selling growth and parking the money in value. We suspect that is something that only lasts a couple of days.

There are many chart breaks on a short term basis…but also on an intermediate and possibly a longer term basis. At the very least, many of these names are going to need time to repair themselves.

 

When Netflix gaps down, it’s a wake up call. When Facebook gaps down 20%, it’s a wake up call. When Intel gaps down badly, it’s a wake up call. When Twitter gaps down, it’s a wake up call. When Amazon opens up $70 and just about gives it all back the same day and then a bunch more the next day, it’s a wake up call. When we see that most growth names were rolling over, it’s a wake up call.
As you can also see, money is indeed flowing into lower beta areas. The question is whether money is being parked there or this is just a major change where money can be made longer term there. Need some more cards coming out of that deck.
Big money is flowing into OILS off of higher oil prices. This is a place to scan on a nightly basis.
Futures are bouncing a wee bit this morning. ILMN big gap to the upside. AAPL after the close.

PRE MARKET

Futures off their lows…almost flat.

CAT up almost $5 this morning…in the DOW.

AAPL reports after the close tomorrow.

A ton more names reporting….ones to watch: PFE, PG in the DOW.

RL, SHOP, CHRW, HUM, RCL, SQ, STMP, BABA, TSLA, CTSH, ICE, REGN, YUM, W, ANET, GDDY, SHAK, WTW.