Yesterday’s pre-market was not so good but the 21 day moving average contained the DOW and S&P with the NDX and NASDAQ contained near the 50 day. The RUSSELL is also holding the 21 day. Add in AAPL and AMZN holding 21 day. Add in the continued strength in a select group of growth names and you still have a “market” that will not buckle.
BUT…and it is a big but…nothing has changed in all the areas that we have been bearish on and are still bearish. The SEMIS again had a bad day yesterday and will open lower again. We are quite surprised that the SEMIS have not influenced things but eventually they will. On top of that, foreign markets are horrid. We have been telling you to avoid them for a long time. Now…newspapers have headlines of the weakness because some areas are now down 20%.
We don’t know if our market becomes a part of the contagion but so far, the U.S. market continues to be a huge port in the storm across the globe. We are not just talking markets but currencies and bonds. Argentina, who we believe has defaulted 8 times throughout the years, were still able to float 100 year bonds. Yes…100 year bonds. They are now trading in the low 70s. Many other countries also have issues.
Asked every day about the marijuana stocks that continue to soar. Answer: just be careful. Extended is extended and they are extended. Froth is froth and they are frothy.
VTL down 90%…the drug did not work.
Check out the insider buying in TIF, TTWO.