PRE MARKET

-We changed our stance yesterday morning. We believe at the very least, a near term high was put in.  We say this because:-
-That was one heck of a counter-trend rally. Markets do pull back.-
-We started to see some breakouts fail.-
-We started to see oils, financials, biotech and other areas roll over. This simply means they all stalled at an area for a few days and then broke below that area.-
-Important names that acted poorly off of earnings getting slammed. Names like Amazon, Netflix, Tesla and a few others are no longer leading up but actually leading down.-
-Fundamentally, you are seeing numbers that we thought would show up. Europe, if not in recession, is quite close. Japan is contraction. China? Who knows what China’s numbers are but lets just say if things were great, they would not be easing like Bernanke and adding a whopping $83 billion to the system in past weeks.-
-Again, this does not mean the end of the world is at hand. As of this second, it is just a pullback. It can last a few days and be shallow but…markets recently have had a way of not ramping or pulling back in a small fashion…so pay attention. And do not forget, we are certain that if markets get hit hard, we will be hearing rumors of Powell lowering rates as again, it is all about the markets to these easy money nuts.- 
-Lastly, this weekend, in our usual charming fashion, we will take on AOC and the coverage of AOC by the media on this “Green New Deal.” Do not miss it.-

PRE MARKET

We are watching Europe closely. Numbers coming out are not very good…and that is being nice. Recession probability going up. The problem is they have no ammo as they still have negative rates and have not stopped the printing presses yet.

We may have hit a wall in here. We saw some momentum indicators stall in the last day. This does not have to mean the end of the world. Corrections/pullbacks do occur. We will know more on how this is pulled back.

The SEMIS were strong yesterday. Watch them. If they lead, market has very little chance of getting in big trouble.

Watch BA…again the leading DOW name.

CMG, IRBT, MTCH up this morning. STI/BBT doing a merger and up nicely.

FEYE, NXPI, TWTR, FCAU, TPR, PRLB and a few others down on numbers.

 

PRE MARKET

Another good day and another persistent day…and even though futures down a wee bit this morning, the SEMIS are again front and center as MCHP, SWKS have not so great numbers but are still up nicely on the open. Nothing bad happens when the SEMIS are bid.

THE STATE OF THE UNION…

Laughable on a few counts.

Laughable that the president said we will not have socialism…and the Dems looked mad.

Laughable that not one mention of debt.

Laughable that not one mention of deficits.

Both parties no longer even fake that they care about debt and deficits.

PRE MARKET

BA and AAPL did the trick yesterday. Quite amazing AAPL crappy numbers…bad guidance but bought. It’s not the news. It’s how markets react to the news. BA did guide up.

Bad news not going down. Good news  going up. Until that dynamic changes…

Powell met with Trump last night but we are being told they did not get too much into easy money policy. Sure!

SOFTWARE remains the strongest. Held up best when markets were being destroyed.

All major indices remain above the 50 day…with the DOW above the 200 day.

Any selling has been bought up during the day.

Very little belief in this rally.

State of the union tonight. Here is our state of the union. Debt is $22 trillion. Yearly deficits above $1 trillion. The first $500 billion of our tax dollars going towards interest payments. The socialists proposing every tax under the sun, moon and stars. The central bank back to easier money. (They were already easy!) But don’t worry. None of that matters because debt is a good thing.

We continue to be the most optimistic we have ever been on the people of this country. We continue to be the most pessimistic we have ever been on the people who are running this country.

PRE MARKET

Futures are flat to down. ULTI big buyout…not much more after that.

AMZN was the issue on Friday as it was down over $90. It is down another $10 this morning. But it affecting nothing on Friday.

GOOG reports after the close. All other biggies have reported.

AAPL good reaction on terrible numbers.

FB good reaction on a sandbag beat and earnings only up 8%.

NFLX poor reaction but bouncing up.

Markets deserve some rest/pullback but the easy money persistence has continued. All major indices remain ABOVE the 50 day…which will remain vital. Easy money talk has continued out of Europe, Japan and China. The dude from Europe actually stated they can print more money if need be…this after for months saying they need to get off the easy money.