IBM yonked again as sales down again. UAL and CSX also down.
Big story VRTX on drug news up $35…helping overall biotechs where the IBB looks perfect.
ASML nice gap. MS smaller gap.
The story is beta/tech/internet/China adrs/Semis are back and in a big way. The June 9th top lasted to July 7th and instead of bouncing up, it has ramped up.
And the Republicons cannot shoot straight.
Just remember what we have told you for years here…not being talked about is the continued trillions of dollars of printed money and the negative interest rates. That is what is doing the trick…and looks like will continue. Japan actually admits to buying up their stock ETFs.
And dont forget…earnings season is at hand.
NFLX nice gap to new highs on big increase in subscribers and higher guidance. Other movers to upside are LMT, JNJ, UNH.
Movers to the downside are HOG, GS, SCSS, ETH, ERIC.
Futures are flat.
On radio yesterday, we mentioned how tight recent action in ENERGY has been TO THE DOWNSIDE. We noted how energy etfs have created a very tight channel during this bear phase. We are watching to see if the channel can be broken to the upside. We are not predicting it. The fact is the next move can be down. We just know it is a very unloved, very under-owned group. When a technical set-up shows up, we sit in our seat and watch. When you have a chance, check out the weekly charts on OIH, XLE, XOP and see what we are seeing. Again, the next move can be down. We are just making you aware of a great channel to play off of if things change.
They have created over $20 trillion of debt.
They have created yearly deficits between $500 billion-$1 trillion.
They have created a welfare state with over 80 programs doling out over $1 trillion/year.
They have slowed down the potential of economic growth.
They have grown Medicaid from a program to help the indigent to covering over 70 million people.
They have created so much debt that we pay over $400 billion/year just to pay interest. Repeat…$400 billion down the toilet every year because of the debt THEY created.
They created a healthcare bill that made no economic sense and had no chance of longevity and on video, admitted to lying about it.
They have used the central bank to keep rates at 0% for 8 years in order to ———– fill in blank. That same 0% ripped savers (middle class) off and handed all that money to financial companies.
They have created an election system based solely on how much money is raised. (after professing money is bad for elections)
They have ramped up taxes, mandates, fees, fines, regulations, directives and overall control of American’s lives.
They have ALLOWED immigration to run amok to the point where many protect illegal criminals. Yes…protect illegals that commit illegal acts.
They continue to expand government to numbers unfathomable. Taxes continue to go higher. Government spending continues to never go down. Government never ends. This year…$4.1 trillion of spending. In 3 years, it will be over $5 trillion. This is up from under $1.8 trillion the last year of Clinton.
Because of all this, they have lost the White House, they have lost the senate, they have lost the house, they have lost governorships, they have lost state houses. They have lost everything. They are supposed to have no power…YET THEY KEEP WINNING.
They keep winning because they have perfected the “tax cuts for the rich” mantra even though some good people just want to roll back tax hikes.
They keep winning because the national media is a bunch of lying on their back, paws in the air, tongues wagging, lapdogs.
They keep winning even though they said Obamacare was magnificent, will lower premiums and deductibles and will cause the Knicks to win the NBA Championship.
They keep winning even though they have been completely wrong.
They keep winning because they keep giving away and scream when someone says you are giving away too much.
They keep winning because “the other side” is just “them light!” The other side couldn’t even get their act together after 7 years of whining and complaining about a failing healthcare bill.
They just keep winning because no one has the grapefruits to do anything about this…and we keep losing as one day this debt-laden, deficit laden, central bank laden nonsense will eventually bite back. And they will keep winning because they will just blame others and the media will stand right with them. They keep winning and we keep losing.
Futures flat. A few beta names tick up. Very strong recent names BABA, AAOI, NVDA continue. Keep in mind, earnings soon for many. AAOI just raised numbers. Careful about extended names.
BLK down $14. Financial leader misses. XPO down a couple…been a leader.
Disaster of an IPO APRN down to $6.80…down 32% from IPO price as Amazon may be getting into delivering packaged food. What will Amazon not get into?
On June 9th, we told you “beta” had topped for now. A week ago Friday, we thought a low for “beta” was being put in. BUT that was one hell of a low. Instead of bouncing back up, SEMIS/TECH/INTERNET and all that stuff pulled a “U”!
During the time “beta” was being hit, we alerted you that other areas were not budging. The DOW, S&P, NYSE just sat tight. Now that “beta”
is getting the bid again, those other areas simply broke out.
Just about all the areas we have been bearish on…remain bearish…notwithstanding commodities, with a few names turning the corner. Commodities work better with a weak dollar. And for a change, the dollar is very weak.
Other than that, we find little to complain about entering earnings season. Notice the poor reactions to some financials on Friday but all reversed up a decent amount of the downside.
JUST KEEP IN MIND, things will change during earnings season. A keen market player needs to sit back and pay attention to the reactions. Remember, it’s not the news, it’s how things react to the news. Expect some wicked moves both up and down.
EEM, FXI, IEMG and other foreign stuff are all breaking out to new highs. The best markets are the ones where good action can be seen worldwide.
We keep being asked about if the Trump agenda does not get through. We think it matters but only to a certain extent. We say this because trillions are still being printed on a yearly basis by central banks. On top of that, many still have negative rates…yes, negative rates. If there is anything we have learned as we look back, never fight the fed…and these “feds” have taken monetary easing to place that even the softest of doves would have never believed. Of course, we will always pay attention to price first but since QE1, you know what has happened.