PRE MARKET

Good day yesterday but after scanning 1500 names, 200 sectors, every country…any rally continues to be narrow in that there is just not a lot of leadership. To sustain rallies, you need to be more broad based. So…let’s hope this narrowness changes.

SOFTWARE had a great day as a few names edged out of range and a bunch of names that broke support recently woke up and tried to turn up.

We will really need to see the big 4 indices get back above the 50 day and then set up better. Otherwise, we will see more back and forth nausea. The recent lows look like they are the lows for this second but leave no doubt, any break will invite institutional selling as the biggies recognize market is giving up.

Lots of noise soon as Powell yaps and the prez continues to loudly jawbone for a whole 1 point rate cut and more printed money. This sickens us as it screws savers, enables more massive debt, distorts price more and more and guarantees when these central bank-induced asset prices break, it will be holy hell. We really hope we are wrong. By they way, the pres used to rail against the Obama/Bernanke easy money. Funny how things change when you are behind the desk in the oval office.

A few notes:

TGT numbers really good and even better reaction. Could be the start of a move. Do not believe the many saying HD and LO numbers were strong. They hardly grew sales and earnings but of course, beat the number.

Since people continue to ask, as long as BYND stays below the 50 day, there is no reason to jump on…and even though it just got an upgrade, valuation remains a joke…and yes, the analyst liked it because of valuation. Sure!

Yields are moving back up a wee bit. We continue to believe that the rally into 8/15 felt climactic…for now. Just means too extended and too frothy have to be worked off before attempting to move higher.

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