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.