We cannot begin to count all the negative divergences. But first…NEGATIVE DIVERGENCES DO NOT HAVE TO BE THE DEATH KNELL FOR THE MARKET…BUT IT BEARS WATCHING!
New highs vs new lows…horror show.
Small and mid caps vs large caps…bad. Just go look at the charts of the russell (iwm) and mid caps (mdy) vs the dow.
A ton of growth names under distribution.
FINANCIALS very weak…though, felt like yesterday they were trying to take a stand…and go look at AMTD, ETFC, SCHW.
A/D figures topped out a while ago.
Add in froth, speculation, the continuation of NO SALES and NO EARNINGS IPOs continuing to come out…
But…THE DOW, S&P, NASDAQ, NDX still look fine with the DOW at highs. Until they break,..they don’t. Just know it is narrower and narrower.
We do want to mention that the SEMIS “feel” like they are finally getting a bid. The SOX looks ok but so many individual names look terrible.
Also, GOLD as well as GOLD stocks may be waking up out of a coma.
Futures up nicely. Just because.
Very weird day yesterday with a ton of divergences.
More new lows than new highs.
Small caps and mid caps smacked.
Growth/beta smacked…for the first time in weeks, seeing a few names breaking support.
ENERGY continues upside. (not good news)
FINANCIALS still gross.
All this with the DOW up 200.
TESLA gets it all back from Friday. Again, Musk needs to raise money…had no choice. Now let’s see if his promise of profits and cash flow comes through.
Futures be down. Weak Europe doing the trick.
TESLA down $38 as the SEC looks to bar Musk from serving on board or any capacity with a public company FOR LIFE. This is a WOW moment because we have seen worse where the SEC was not looking to ban for life…but we think that this violation in PLAIN SIGHT moved them to be tough. Also, the SEC moved quickly…normally it would take longer…telling us they believe this is open and shut. We told you on day one this was fraud and that if it wasn’t Elon Musk, any board would have removed him but Elon Musk IS TESLA…so a lot tougher.
Continues to be a very narrow market. We are amazed just off highs, more new lows than new highs. Also, seeing divergences in advance/declines.
We need to add the continued relative weakness in the SEMIS and now FINANCIALS. TO BE WATCHED CLOSELY.
Markets reversed down yesterday off the fed as financials led down. This is to be watched. Very poor action combined with the poor action in the semis give us pause.
BUT most indices remain fine…most. A glance at the mid caps and small caps (MDY and IWM) show both breaking slightly below the 50 day moving average. This showing under-performance in these areas. Paty attention to this.
S&P futures about flat…NASDAQ better as AAPL gets analyst bump.
Off tv today as Kavanaugh stuff front and center.