Crappy day yesterday and with a market without memory going back and forth right now…futures up nicely on blah blah blah low level trade talks in China will resume.
To get the bad news out of the way:
Wow…China, Russia, Brazil, Turkey, emerging markets and so many other countries have just continued to implode.
COMMODITIES have been mauled. Have you seen the charts of gold, silver, copper, steel and all that crap? Go look at RIO, FCX and others.
With a small break below support in oil prices, oil stocks also taken out back. Look at OIH, XLE, XOP and underlying stocks.
But the good news and in our opinion, amazingly so:
Even with yesterday’s nausea, our markets are just a couple percent from recent highs…THOUGH OUR THEME ON VERY SPLIT TAPE CONTINUES. The question is whether if there is more weakness elsewhere, will it finally take us with them. So far, aint happening.
Walmart…$10 gap to the upside equivalent to $30 billion market cap gain. Amazing story…while JC Penney continues to implode.
Cisco also with the nice gap for this megacap name.
Boeing…the poster child on trade, up nicely on hopefully lessening trade tensions.