PREMARKET

Futures down a wee bit after a strong day yesterday.

By the book:

Wednesday’s action was a clear, high volume, follow through day. Some say it was because of the election. We could care less. We have been wary of this rally though we called A LOW last Wednesday. There has been no bases. There has been hardly any leadership except for some defensive areas and then today, beta, tech,software and all that uff popped. A lot of  growth put their feet in the ground and turned up though still off the highs with most still below the 50 day average.
The good news is that if this is real,we are in the November/December seasonality window. There are no guarantees on this and to be blunt, any further rally will remain narrow as many areas and indices are STILL below the longer term 200 day…and many names and areas have done nothing more than bounce.
Lastly, make note of managed care and hospitals which showed up on our screens. The election outcome makes sure Obamacare stays…which is a huge help to these areas. Mre to come…will know more on how they pull this back but we stay with A DARN GOOD LOW WAS PUT IN LAST WEDNESDAY!

 

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