THE CLOSE

With the DOW finishing up:

The TRANSPORTS are moving below the 50 day.

The RUSSELL 2000 is already rolling over and headed towards the 50, if not more.

Smaller and medium banks may be rolling over. (KRE) (KBE)

New highs vs new lows had been pathetic…and needs to be watched.

A/D 9-21 on NASDAQ today with NDX actually up.

Just saying. Of course, market is never going down again.

A FEW NOTES ON MARKET

As we write this, Dow is down a measly 50 points, Nasdaq down 31. But…

We think it imperative to flush out any issues market is showing and even with a non-event of a pullback:

The TRANSPORTS are moving below the 50 day.

The RUSSELL 2000 is already rolling over and headed towards the 50, if not more.

Smaller and medium banks may be rolling over. (KRE) (KBE)

New highs vs new lows had been pathetic…and needs to be watched.

In no way are we saying end of the world is at hand. But…just a minor move down exposing these issues is noteworthy and goes into the file manager.

PRE MARKET

Lots of jello moving on the plate this morning…while futures are flat:

PCLN down $160…yikes. Others gapping down are CAR, TRIP, SWKS, RRGB, TRUE, MNK, VERI, FN. Some are very big gaps to the downside.

WTW breakway gap to the upside…the same on RCL. Others to the upside are VRX, HAIN, MTW.

Other notes:

Keep energy on the screen. Pullbacks preferable after this recent move.

Commodities again perking up as copper prices rise.

Watching shippers also. They have been destroyed but also seeing them turn up.

Housing also continues strong but need new set-ups.

We would really love to see some correction. This enables one to figure out where the real strength is. But so far, nothing doing.

PRE MARKET

Futures are back to flattish after being down overnight. The Hang Seng was down 500 points but finished down a measly 6 points. Bear markets last hours right now.

Not a lot in the way of earnings but:

AVGO buying QCOM and AVGO goes up…even though QCOM sales and earnings are down. QCOM does not want to do the deal.

Energy prices ticking up again. Remember, a bunch of names should be showing up on your screens.

We are due to piss off the bulls…overdue…no, way overdue…no, waaaaaay overdue. But so far, any selling has been intraday and bought up. Remember, in spite of 4.1% fake unemployment, 3% GDP and we are told, better economies around the globe…we are still at 1%, Europe and Japan are still negative and the printing of money to bubble up assets is still in hyperdrive. Leave no doubt this is what is juicing markets.

Lots of crap going on in Saudi Arabia. The optimum words are “power grab.” Not sure of the repercussions.

Headline story this morning is again on guns after the tragedy in Texas. We have been saying forever we believe in the right to bear arms but at the same time, some logical legislation is out there. Don’t know if it could stop not only these mass killings but all the killings going on in places like Chicago. I  just hate when political points are being made during times of tragedy.

 

WEEKEND NOTES

Some random thoughts:

Prayers go out to those affected in Sutherland, Tx. Seems we are doing that a lot lately.

After a longer look at the tax package, we are happy with the corporate side, completely unhappy with the individual side. After talking with some brilliant accountants, seems some middle class people are going to pay higher taxes…and don’t start me on the poor treatment of the producers and the ones doing the hiring. Complete missed opportunity for politicians that are afraid of their own shadows. Remember, high taxes on the wealthy do not hurt the wealthy but hurt those and prevent those from becoming wealthy. Of course, do not listen to the socialist party as they are using the same language I heard when I was in my teens.

My NY football Giants!

Donna Brazile (a cheater) now calls out the Clintons and the DNC as cheaters. Tigers are eating their young. My! This is getting fun. But not surprising to me. Those that have followed me for years know what I think of the Clintons. In case you haven’t….sleazy, slimy, scummy, corrupt, influence peddling machine that has created major wealth for people who are crony capitalists with their own money but socialists with your money. And that’s the nice things I can say! And then their is their criminal fund raising entity masquerading as a foundation. Don’t believe me? Just go look at the tax records. The media has. That’s why they don’t report on it. They know how bad it is.

Need not go into too much depth on the market but:

BEYOND overbought. BEYOND bullish sentiment. BEYOND complacent. But until market says otherwise:

Money flows into mega-cap NASDAQ/NDX-types off of earnings. Some with nice sized gaps.

As we have stated, time to put some energy names on the screen. Refiners have been working for a while but seeing explorers now moving above mid-level bases. We had previously been bearish for a long time in this area.

The Semis are the most extended and overbought we have seen since 1999 and now a AVGO for QCOM merger talk got them even more frothed out on Friday.

Still no issues with FINANCIALS. Nothing bad usually happens when financials are in gear along with the semis.

Just know shorter term, lots of near-term divergences last week.  Doesn’t have to mean anything but we are way overdue, even for a minor correction.

PRE MARKET

Futures up but mostly on APPLE which is up $6.50.

OLED, ANET, ROG, MELI, MOH, FND, WING, TNET are up.

DATA, STMP, COHU, P, SBUX, HLF, ACIA, LOCO, BLMN, CC, AIG are down.

As always, missed a few and price can change quickly. But this is a good review.

Will have market report as well as our thoughts on the “tax reform” proposal.