Even with major indices just off highs, there is a ton of weakness. We are seeing HOUSING breaking down from low levels, continued weakess in GAMING, GOLD/SILVER, STEEL, COMMODITIES, SEMI-EQUIPMENT which is being blasted, DISK DRIVES, HOTELS, AUTOS, a few select RETAIL showing some tops, a ton of OILS, all the other countries and areas we have been telling you about. Just go take a gander at EEM, EFA, FXI, RSX, VWO, IEMG. On top of that, saw more new lows than new highs most of last week. On top of that, past leaders like FB, TWTR and even GOOGLE now breaking the 50 day. Less than thrilled that the AMTD, ETFC, SCHW now rolling over, very often market proxies.. Let’s add in the BOND MARKET may have topped. (TLT) And may we say lastly, we are hard pressed to find good chart set-ups except for (ready for this) some big cap DRUG, CONSUMER STAPLES and other defensive areas. Lastly, don’t know how to even start talking about Tesla…glad we laid off.
The good news is that our proprietary list of growth names continue to be a port in a potential oncoming storm but even some of those names like AAPL, AMZN and others came in decently. We can all but guarantee if the market comes after this growth list, then something is up. Other areas that act well are MANAGED CARE, RAILS, select RESTAURANTS, select RETAIL but again, leave no doubt, the herd has been thinning out. More thinning would not be a good thing.
The good news continues to be major indices have hardly budged with any pullback contained. Until that changes, it is folly to get too bearish. Just realize this in no way is a “throw the darts” market.
Lastly, very speculative and ridiculously priced marijuana stocks have been the recent “buy at any price” froth area. One name (TLRY) has a $7 billion market cap with just over $20 million in sales and is even down 15% off highs. We will have no problem probing new technical set-ups as fads can pay off in the short term but word to the wise, if you buy them ridiculously extended, you are in for a world of hurt when they decide to come in so pick your poison correctly.
For no reason, futures gapping up this morning. Again, any pullbacks are contained. Usual growth names up in pre-market.
Very slow earnings week. ADBE and ORCL on Thursday.