PRE MARKET

Yesterday, on our very popular, award winning radio show, we simply stated we thought the market got pooped out in late action. We stated we thought a pullback was at hand but thought any pullback will be controlled and rotational. What we saw? Simple…a narrowing of advancers, a couple of days of churning (no progress) and than the late sell-off.

We walk into a decently down open. Again, at this point, any pullback will most likely be controlled and rotational. The good news is that any pullback gives us a better view of leadership. Can a pullback turn into something worse? Of course it can…but one step at a time. And of course, in these markets, we have seen a bunch of early ugly bought up so anything possible but odds favor some time and price here.

 

 

PRE MARKET

Futures flat as flat can be.

YELP,SAIL,CVNA,AYX,ROKU,GOOSJACK, IAC, NCLH gapping up.

BKNG down a measly $150. STMP down $36.

We love quiet markets. It elongates bases and sets things up better. Will take a couple of weeks of this.

No more news on TESLA this morning but make note with the stock at $365, there is a $55 discount to Musk’s tweet price.

 

THE OPEN

We will have more on Tesla later but you can hear my thoughts on it from radio yesterday at www.garyk.com.

Stocks are flattish this morning on the open.

We do not have a lot of complaints on the market here. For sure, still areas not working but charts of the indices look fine. Just a little overbought say may settle down some.

Good reaction this morning to KORS, MTCH, INGN, CYBR, AAOI.

PRE MARKET

Very rare we don’t have much to complain about. After our “changing of the guard” thought, lower beta areas have come on broadening out the market. But the other side in where growth was being whacked, stopped dead in its tracks on the downside when AAPL gapped up. Since, growth has bounced decently.

The charts of the indices look constructive. The S&P may be completing a good 6 month+ base in here as it approaches the highs. The DOW remains weaker but also looks to be emerging above intermediate term levels.

For sure, still plenty of areas not working but improvement continues and now “feeling” weakest areas like EMERGING MARKETS, CHINA and others may be trying to put in lows. When the worst put in lows, usually good news.

And yes we recognize we are into the August/September period when markets are supposed to be weaker.

WEEKEND NOTES

We wrote changing of the guard last weekend and as of now, we are getting a little over a half of it.

We have seen some decent distribution in growth…but the good news, overall, still holding up…especially with AAPL and now TSLA on the move. But on the other end:

We are seeing continued money flows into areas that had previously been on the dormant side. REITS, UTILITIES, FOOD, BEVERAGE, HOUSEHOLD PRODUCTS, RAILS and other lower beta stuff.

The good news is that the patterns of major indices look fine. Nothing spectacular but fine. We call them big bases…all starting the end of January. Even the weaker areas, like the Dow, are shaping up better here.

We are now in what keeps being told, the bad months of August and September. Before getting all bearish, let’s see some serious distribution.

For sure, we took almost 30 past growth leaders off our proprietary list…FB and TWTR come to mind, but so far, no damage being done off of it. And may we add markets continue to not worry about tariffs. We repeat…small tariffs, no biggie. Very big tariffs…no promises.