Some icky midday notes!
We know we have a maniacal Fed meeting tomorrow. We know we have an election next Tuesday that looks like as of this juncture, anything is possible. But absent the Fed announcing another round of QE, our thoughts of the market deteriorating continues. In fact, on a daily basis, the underlying action continues to worsen. While the Dow and S&P continue to hold the vital support we have outlined for you, the Russell 2000 has already gave way while many sectors continue in their own private bear markets.
In fact, we can maybe count on one hand the sectors that have good relative strength and in uptrends while a ton of areas are being bludgeoned. Have you seen what they have done to everything healthcare lately?
We are also noticing something else. Names like Panera,Tesla, Google have strong reaction to earnings only to immediately sell off and break down. This is not good news. So to repeat, if at any time the DOW takes out 17,950-18,000 and the S&P takes out 2114-2119, get out the fork.
Watch the semis and the financials. These have been the two strongest areas. We believe a break of support would coincide with these two strong areas finally topping out.
Lastly and to repeat, the market has been and is again acting like it did late last year in advance of the January smackdown. Stock by stock and sector by sector, the market’s underpinnings were giving way. Under all that weight, the major indices finally gave way. Of course, another round of gargantuan QE by Japan, Europe and China stanched the bleeding in February. Will they have more in store if markets buckle?
Going to be quite the interesting next couple weeks.
Yoda cares not that the fundamentals, and the technical say short this market.
Yoda waits,, for Darth (Stanley Fisher) Vader, ( shadow fed chair, Fisher ) to eat a can of beans and wearies, …drink a carton of chocolate milk, …ram down his gullet an un-chewed hard boiled egg, then drop his pants, ….drop his underpants, ….aim his butt crack at this stock market; and crap out as much Jew poo as it takes to run this market right back up.
Yoda will not fight the fed.