Lots of travel this weekend so have lots of notes…
After a nauseating week, a little relief because of 3 things occurring late in the week.
The all-important biotechs were slammed down to the 50 day where a rumored buyout in the group stanched the group’s bleeding. It will be vital the 50 day holds going forward as this is the #1 risk group.
The all-important semiconductor group was also slammed all the way down near the 200 day when another rumored buyout in the semiconductors stanched the group’s bleeding. We will find out soon whether Intel buys Altera. Intel moved up nicely on the rumor even though they would be the acquirer. The huge move in the semis happened late in the day on Friday.
In a carefully worded speech, Yellen just happened to throw in the word “accomodative” when it comes to Fed policy. She added the words “for some time!” Does that sound like a central bank that is ready to do anything? Again, not only do we believe there will be no rate hike, but these maniacal people will embark on QE4 on any blip to the downside.
NYSE 10 months of no gains
Dow midle of range going back to November.
S&P the same
NASDAQ and NDX sitting on the 50 day
Small and mid caps still have the relative bid
The Transports weakened so much, the group is back down to the all-important 200 day…where it better hold. This is happening while oil prices remain in a bear market.
It remains a very split tape where:
On the bear side: Energy, oil&gas, steel, copper, aluminum, coal, ,gold, silver,gaming, disk drives, credit cards,rails, utilities, reits, food, drugs, beverages, tobacco, household products with the semis smacked hard.
Big financials are back to range bound with a few acting very poorly…BAC comes to mind.
On the good side:
Biotechs held 50 day to the penny (ibb,bbh,bib)
Retail- home improvement, department stores, discount, restaurants,auto parts,cruise lines continue to act well.
Housing stocks definitely emerging now with a few names moving into new high ground.
Managed care and miscellaneous Health care are still in good shape.
End of quarter shenanigans next 2 days and earning’s season straight ahead.