kaltbaum pre market
Leave no doubt that there is a coordinated effort around the globe to juice markets again. The fed all but telegraphed more money printing as no less than 3 fedheads were out yesterday yapping about more aggressive easing is needed. That would suggest that the helicopters will be out in full this morning as Big Ben yaps to the politicos. On top of this, China lowered rates this morning sending flat futures up nicely.
Technically, potentially good news. All areas of the market broke below support on Friday…and those same support areas were retaken…a failed breakdown. This is the oppposite of something breaking out of range to the upside and then tucking its head back in like a frightened turtle. For now, as long as those lows are held, the market has a chance. Yesterday was only day 3 of an attempted rally so it does not qualify as an all-important follow through day…but the action was compelling. If we had the market to do our bidding, it would settle down in here and then start to make higher lows including one more high volume, big up day. We then would want to see leading growth names start to break out in droves.
Keep in mind, the news is going to be fluid. The actions you are seeing by the culprits are because things are not that great here and around the globe…but markets love easing and printing of money. At least, so far they do. And as you know, we watch markets. We continue to believe there will be serious repercussion for all this money printing down the road, but for now, they provide tailwinds for the market. Lots and lots and lots of resistance ahead…but the juices get flowing quickly when fedheads are printing.
So we get another gap this morning. I think it is crazy to buy into it whether markets continue higher from today’s gap. I mentioned DLTR last night…and still good with it…but would only probe it. YUou have the rest of the list. I will add and subtract as it goes.
MW,NAV,LULU,PLL,MOH,TTN gapping down. LULU was down 10 but only down 5 as I write this. No longer a leader.