A little reversal yesterday but not a biggie but a few things noteworthy.
TRANSPORTS still aint happening and now a name like UNP rolls over. FDX hit hard this morning not going to help.
FINANCIALS were edging out of range but by the close, tucked their head in like a frightened turtle.
Notice how AAPL pulling back…pulled back the NASDAQ. Nothing wrong if it pulls back some more.
HOUSING aint happening. Small and mid still lagging decently.
Why do we mention these areas? Because it is easiest to isolate weakness when a market is ascending.
Fed day today…blah blah easy money!
BOEING (BA) is down $9 this morning. We receive a decent amount of emails each day on our thoughts. Our answer to all is that “WE DON’T KNOW!” People actually get mad when we tell them we just don’t know. We don’t know:
What kind or what size lawsuits there will be.
How long it will take to get the planes back in the air.
How much it will cost to get the planes back in the air.
How many, if any orders will be cancelled.
What kind of government investigations there will be…and there will be investigations on this plane’s approval.
And of course, how the market treats all this. We know there have been some good trading moves both up and down. We know pundits are coming out in droves telling you what kind of value the stock is at these levels. (THEY DO NOT KNOW)
We just do not know the day to day. We can continue to look at support levels. We can look for accumulation and distribution but that can change overnight because of the news.
As always, it is your money.
We write less in better markets because it is mostly in bearish markets we separate from the pack. Remember, wall street is a fully invested, fed driven vehicle. With the central banks, we suspect you could clip off several thousand, if not more points.
The most important part of the equation remains a clear lack of institutional selling. It can start coming out of nowhere but even in the down week, it was just a pullback and we easily segued off the negative side on the Friday reversal two Friday’s ago.
The SEMIS are on the move.
The FINANCIALS set up here.
NEW HIGHS have been picking up but still not even close to very good.
RUSSELL 2000 weak.
While better, FOREIGN MARKETS not even close to the U.S. The best markets are strong worldwide markets.
Bullishness and froth are showing up with some huge IPOs coming out.
Another gap to the upside…4th this week…though futures been pulling back in past few minutes.
Most global economic numbers continue to head south while markets head north. One hopes that the markets are flushing out an acceleration.
ADBE, ORCL gapping down…2 big tech names…AVGO, ULTA gapping up. Full report over the weekend.
GH big move yesterday on more losses. $90 Million sales…$8 Billion market cap.
This morning…DOMO and MDB gapping up…both on big losses…but analysts say sales growth is strong.
Just reporting the news. Pretty much went from “end of the world” to “it’s like 1999” in 2 months…all off a change of stance in central banks.
This is not a complaint. This is just reporting to you that overall, economies around the glob have been heading south while earnings and sales growth has slowed to a crawl here overall. Maybe the market is looking forward at an acceleration.
Boeing…we want to own. A lot of the bad news is out…but too many unknowns. Lawsuits, how long it takes to first figure out the problem, how long it takes to fix the problem, will anyone cancel orders…there are over 5,000 orders on the books. The stock was bought up after the U.S. grounded the fleet. Today is another day.
Facebook…the data collecting monster now being looked at for data collecting they were not supposed to be collecting or something like that. Still dont know how I could be in outer Mongolia in an internet cafe…trying to find good restaurants in Mongolia…then go on my Facebook page and see an ad for restaurants in Mongolia. Not sure this is what I signed up for.