Futures are down again as all the talk moves to North Korea. The media continues to put out the mantra that it is Trump who is the threat and not Kim Jung Un. I do not know what happened here. I know they don’t like him. I know he has antagonized them but that goes both ways. They have excused the last 3 president’s ineptitude to get us to this point but it is all about Trump’s rhetoric. Why do I think if Obama came out with harsh rhetoric, he would be praised for his toughness. The hypocrisy is over the top.
Here is the potential good news about this little blip (so far) to the downside. I am already seeing a large amount of bears coming out of the woods exclaiming this is it. This is the big drop. Look out. Our motto: we will let the market decide. We still see a 60-40 tape where 60% remains in good stead with 40% in their own private bear market. If that changes, we will let you know.
We would continue to avoid transports as they remain weak. Only thing going for them is they continue to hold the longer term 200 day average. Small caps continue to under-perform large caps as the RUSSELL is below the 50 day average again.
GOLD/SILVER getting a bid off of the saber-rattling. Also, DEFENSE stocks for obvious reasons.
Gaps to downside today: NTES, DDS and a few smaller gaps.
Gaps to upside are PRGO, YY and a few smaller ones.
Apple goes ex-dividend today…so 63 cents come off the top. Hey…you asked.
And lastly, we have been telling you that THIS Republican leadership are ineffective, inept and should not be running the show. They are unfortunately, proving me right.