PRE MARKET

Futures are up. What else is new? We are heading into massive easing by the ECB and more easing here. Do not worry about anything else. (sarcasm)

But the most important part of the equation is that the big 4 are now above the 50 day. The SOX is above the 50 day. We promise that overall, nothing bad can happen if these important indices and areas stay above. Of course, underneath the surface, not so great. Small and mid not so great. Transports not so great. A bunch of areas not so great. Foreign markets not so great but all these areas bumped up some in the recent move higher.  It just tells you to stay large cap over everything else.

A few other thoughts:

A decent chance that the highs of the past 3 weeks in bonds is the highs for now. Just for now. It is still a bull market in bonds.

A decent chance we have seen the highs in GOLD/SILVER and underlying stocks for now. Just for now. This area continues to be in a bull market. Just extended and need of rest. We expect some up and down for now.

One negative to watch is the whole software group continues to worsen with many names breaking the 50 day if not more. Not thrilled the leading group of recent months looks like toast but for now, other things getting rotated into.

 

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