-We really thought we would be getting a few more days of pullback/corrective work…but then late Friday:-
-“U.S. central bankers are currently debating whether it should confine its controversial tool of bond buying to purely emergency situations or if it should turn to that tool more regularly, San Francisco Federal Reserve Bank President Mary Daly said on Friday.” –
-We are not sure what time this was released but we do know everyone picked up on it in the last 30 minutes of the day…and away markets rebounded. You already know how we feel about central banks. It just seems to be getting worse and worse. We were in front of thinking Powell was just like the rest but this is now getting ridiculous. First, he does the 180 and now he floats this. Leave no doubt this stuff is not released by accident but with markets in mind.-
-So…that may be it for the little correction. We came off our bearish stance January 4th for just one reason…the about face by Powell. And now, more fuel for an already lit market while Europe heads into recession, Japan heads into recession and China heads south.-
-BUT still wanted to remind you of some of the things we have been seeing…-
-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. At the very least, areas to probably avoid.-
-RETAIL acts terrible…especially some of the big names.-
-Important names that acted poorly off of are earnings getting slammed. Names like Amazon, Netflix, Tesla and a few others are no longer leading up but actually leading down. Based on some of these areas weakness, we expect any further rally to be more  narrow.-
-Fundamentally, you are seeing numbers that we thought would show up. Europe, if not in recession, is quite close. Japan is in 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.-