THE CLOSE AND PRE MARKET

Nice little swing yesterday off of Trump Jr news but after all was said and done, the selling was bought up. So far, the support levels we outlined for you in the past few days are holding. NASDAQ 6100 and the NDQ 5600. Also, the all-important SEMIS (SOX) held at 1020 breakout level. Though volume has been low, price  is on the move from those support levels.

Futures up nicely this morning, especially on the NDX as Europe strong. Europe has been correcting but like most, the corrections have been shallow and short-lived.

Growth is starting to reassert again as the NASDAQ back above the 50 day with the NDX opening above the 50 day today. Just keep in mind, trade is now getting wide and loose and that’s after a good move up. That does not mean things do not go higher. In fact, starting to see a few new highs.

Major indices continue to show very little ability to correct in a meaningful fashion. The latest drop was stymied right at support for growth areas. Sellers just cannot penetrate lines of defense. We now move to earning’s reports and the reaction off of earnings.  Most major indices remain constructive. When the NASDAQ/NDX and SOX were hit, the DOW and S&P didn’t budge.

We now add that we are seeing better action in a few commodity names. No leadership but feels like lows are being put in.

AIRLINES, HOUSING, CHINA ADRs showing up on our screens continuously…though they are very low beta. As stated, also again seeing favorite growth names starting to reassert.

Lastly, Yellen says some stuff today and tomorrow. Don’t worry…everything is just great. Markets say so.

 

The Socialists still don’t get it!

What’s to stop people from leaving? Keep it up Seattle! It’s never enough for these bureaucratic boobs!

SOURCE: http://www.seattletimes.com/seattle-news/politics/seattle-council-to-vote-today-on-income-tax-on-the-wealthy/

PRE MARKET

Yesterday, beta day with big-cap leading way. AMAZON (AMZN) back above the 50 day as it is Amazon Prime day. Yippee…

Also, good day for many Chinese ADR’s moving off the 50 day like TAL, JD, EDU and others.

Other notes:

SNAP now below IPO price and hit harder this morning. As we stated on the date of the IPO, you get to pick your poison on whether you want in on an IPO foisted upon Wall Street at an absolutely assinine, assiten, asseleven price. You see the outcome. On top of this, it is being reported that the business has been heading south.

We wanted to make note of Commodity names. We have been bearish on just about every name in the space for a lon while. We are not so bearish any more. For sure, clear lack of leadership but a few names perking up. CENX the real strong name. RIO putting in a big base. And a lagging name like FCX looks like it may want to put in some sort of bottom. Again, not great leadership here…but thought it worthy of pointing out. We think the dollar continuing to weaken has something to do with this.

HOUSING had another good day yesterday but today, faces the dreaded downgrade. Interested in seeing whether it gets shrugged off.

 

VENEZUELAN SOCIALIST ECONOMICS KICKING ASS!

SOURCE: https://www.washingtonpost.com/world/things-are-so-bad-in-venezuela-that-people-are-rationing-toothpaste/2017/07/07/a11fb782-6197-11e7-80a2-8c226031ac3f_story.html?utm_term=.92ac7c03466b

PRE MARKET

Futures pretty much flat with a few beta names getting the usual target raises whenever they are not acting as well as the analysts want. Yes…shenanigans.

Other than that:

Earnings this week:

Tuesday- FAST, OMC, PEP

Wednesday- CSX

Thursday- DAL, TSM…airlines act well. Lower oil not hurting.

Friday- Financials start up with C, JPM, PNC, WFC. Financials have a decent bid since the fake stress tests.

WEEKEND REPORT-REMAINS A SPLIT TAPE

The tape remains split. We have taken pains to tell you what to avoid. You know the areas and you know the names. For a change, we will ignore the bad today and just write about what’s still working, what’s looking to work and anything else in shape.

The new high list is laden with airlines and housing. Yes…airlines and housing. We guess it is about low oil prices and continued low rates. We have seen nothing that tells us this won’t continue.

With airlines strong, the TRANSPORTS act well. You can add the rails to what is helping the transports out as well as strong FEDEX.

The DOW, S&P and the NYSE look just fine. All pullbacks have been contained by the 50 day average. The same goes for the RUSSELL 2000 which has basically been range-bound since November. These areas have been outperforming the NASDAQ/NDX as of June 9th when we told you there may be a changing of the guard.

FINANCIALS still act well off the fake stress tests. Our two favorite names in C and BK remain in shape. Others acting well are BLK, BX, CMA and a few others. A quick glance at the XLF shows a long trading range where one good day breaks you out of it to the upside.

DEFENSE stocks are breaking out. Who doesn’t like a good war?

A bunch of INDUSTRIAL names keep edging higher. XLI showing the way.

BIOTECH remains in shape off the recent index breakout.

And lastly, we have been telling you a near term top was put in on June 9th for the SEMIS/TECH and all that beta stuff. We have been giving you out important support levels as these areas worked lower. The good news is that on Friday, the SOX held the 1120 area, the NASDAQ held the 6100 area and the NDX held the 5600 area. Keep those levels in mind.  We still suspect these areas need time and price. If those levels give way, it will then be a lot more time and price.

And it is now earning’s time.