Yesterday…the good news, after reversing down hard, indices finished half way on the day’s bar. The bad news, decent reversal off the high. The good news, it’s just one day.
But it’s just one day.
Leading SOFTWARE names raided. This is to be watched. Maybe they are just pulling them in from extended conditions. Not thrilled to see leading names hit so hard.
KSS and TGT gapping up this morning on some more not so great earnings.
More fedheads around the globe calling for easier money, including one from our shop. Most economic numbers around the globe continue to be soft.
We would be thrilled to see a couple weeks of nothingness as it sets things up better. Maybe that started yesterday or maybe it was just one day.
Don’t worry about yesterday. Don’t worry about the past few days. Markets just gapping up today. The all-important German Dax moving above resistance today doing the trick. When markets pull back for a few days and get a lot of it back on one gap to the upside, that is not bearish.
A few TECH names gapping up to a certain extent…ADSK, SPLK, VMW, WDAY. FL also and GPS splitting the company. Full thoughts over the weekend.
AYX, CROX, SYNH, WING, PRAH, WIFI, FIT, HPQ, CELG, AAOI, BKNG, SQ, TDOC. In this list, BKNG and SQ stick out…but what sticks out more is a decent amount of gaps to the downside. Maybe it is nothing. We just wanted to point it out out.
Our thoughts from a couple of days back that markets may have hit a near term wall is coming to fruition. So far, it is nothing more than a pullback. The only group that is really rolling over is the MANAGED CARE with names like UNH, WCG, HUM, CI, CNC breaking down. ANTM gapped up on numbers and is just pulling back. After this group, not seeing anything that looks like it…yet.
The SOX should continue to be watched. They are pulling back bu notice they were down much worse during the day yesterday.
Futures are hardly down on the S&P after being down markedly overnight. NASDAQ futures a little bit worse because of BKNG.
Gapping to the upside are JD, CVNA, MNST, BILI,
Futures down a bit. We said a couple days back it “felt” like market was stalling out and may be ready for some sitting/pull back/corrective work. We are getting a little bit of it but again, it is a no biggie. Pullbacks and settling in are not a bad thing. It is actually a necessity. So we sit back and see where it takes us. Again, so far, not much.
More gaps to the upside this morning. BBY, MELI, PANW, TNDM come to mind. This on top of AZO, DDS, ETSY yesterday. To be clear, it is good news to see a decent amount of strong reactions. Big gaps to the upside are very rare in bear markets.
And lastly, cost estimates of the New Green Deal are between a measly $53 trillion to over $90 trillion over 10 years. We think these numbers are low because it does not account for an economy that would go into the s—-ter. This would certainly raise the costs for this fantasy land nonsense. We will continue to be one of the biggest voices against these authoritarian dictators that want to run the world. They want to run your life. Tell you what to eat, what to drive, what to believe. They want you to believe they are altruistic but there is no altruism in power and control. They tell you higher taxes are to help others but they dont tell you that for every $1, maybe…just maybe 10 cents remains after all their bureaucratic nonsense and their payoffs to people who bow down. Just notice they will not tell you cost. They will not tell you how. They will just tell you the rich and successful are crooks, billionaires are immoral and people are poor because others are rich. We also want you to notice that all of these people have never run a business, created a dime of wealth and have actually not a clue how things work. More to come.
We stated on radio yesterday that we thought we were hitting a short term wall. This was based on sentiment going coast to coast but also lots of tails to the downside yesterday off of very extended short-term conditions. We must tell you a pullback/correction/sitting would be terrific at this point. It sets things up better, pulls in things better and gets the bulls a little worried.
At his juncture, we do not believe any pullback would be troublesome but more controlled. Of course, that can always change and will let you know. There are a bunch of names that had strong gaps and moves off of earnings and will be watching them to see how they act in here.
Gaps this morning…AZO with a big gap even though sales flat. THC, DDS, HTZ, MOS and MNK are up. HD not helping the cause down over $6…a Dow name. Also, TREE, MEDP, SHAK are down.