Big cap tech!

More big-cap tech as the NDX outshining the rest by miles. Somehow, we expect this to continue as money piles into a narrow group of names.

We were asked a good question. Why are all these big growth names soaring right before earnings? Who would take such a chance? Answer…no clue. For sure, AMZN, FB, AAPL and others getting a big bid with no let up. But to try and figure out who and try to figure out why takes away from the fact they are moving. If one wants to delve into buying right before earnings, have fun. We just don’t believe there is a great edge in guessing what a reaction will be.

Commodities continue to croak but have to let you know, the selling now feels a little panicky…which often leads to reaction lows. Time will tell. No matter what, the trend is still yuck!

IBM continues to cough it up. Another bad quarter with the stock acting accordingly. We have been bearish on IBM for a long time…and especially bearish on how they report their earnings.

50-60% of the market still aint having it.

 

 

Puerto Rico on the Brink Owes Investors $5 Billion in Next Year

http://www.bloomberg.com/news/articles/2015-07-20/puerto-rico-on-the-brink-owes-investors-5-billion-in-next-year

NFL Teams Split $7.3 Billion in Revenue, Packers Numbers Reveal

http://www.bloomberg.com/news/articles/2015-07-20/nfl-teams-split-7-3-billion-in-revenue-packers-numbers-reveal

Required Reading Of The Day

IMF Appoints White House Adviser as Chief Economist -Fox Business

Bomber Kills Dozens in Turkey – WSJ

Nasdaq Closes in Record Territory, S&P Misses – Fox Business

Lockheed Martin to Buy Sikorsky for $9 Billion – WSJ

IBM Profit Falls as Revenue Declines – WSJ

 

Mega-cap, tech-heavy, nasdaq/ndx types lead the way!

And you wanted to see a lot of changes because of the NDX and to a lesser extent, the NASDAQ flying into new highs? We understand but after doing a big scan this weekend, not much has changed. Of course, the obvious is that some mega-cap, tech-heavy, nasdaq/ndx influence stocks are going en fuego on earnings and a few right before earnings come out. Be careful! Be careful about those who are telling you all this is bearish and that the market is narrow and that this reminds them of 1999 and a crash is coming and this, that and the other thing. The play is to just stick with what is in front of us and that is:

Amazingly, 60% of the market remains in poor shape while these big names are on the move. But don’t get it into your head one way or another what will happen. For months and in some cases, over a year, we have been guiding you away from the many bearish areas that have been in downtrends…with many still in downtrends. Just stick with what is working as the good keeps getting gooder in areas such as biotech, banking, regional banks, oil refining (the rest of oil remains extremely bearish),restaurants, cruise lines, retail-(auto parts,drug stores,internet), s&ls and those big cap names…which are:

Netflix…another big gap off of a 63% drop in earnings.

Google-as the new cfo is controlling costs.

Amazon…which has not reported yet but is slated to report a loss.

Apple…which looked dead a week ago is now back into the upper range with earnings soon.

Tesla…coming on again.

Facebook…in sympathy with Google.

And of course, the biotechs continue to help the nasdaq/ndx as the nonsense continues. We found 2 more names come public this week with no sales. There are now more than 150 public biotech names with no sales. That will end well.

Again, just keep in mind with all the fireworks you are seeing, there still remain a lot that is wrong…but that should not keep you from playing the good as the tape remains split. May be there will be a day where all the divergences come back to haunt things. It just has not happened yet. Thousands more earning’s reports in the next 2 weeks. Stay tuned.

What to Expect When PayPal Starts Trading Monday

http://www.bloomberg.com/news/videos/2015-07-17/what-to-expect-when-paypal-starts-trading-monday