When you get past all the wild action, our themes have pretty much remained the same and that is:
February 9th was not only A low but was THE low that will not be taken out any time soon. And now with the strong action of the past week, we highly doubt
we break the recent low of March 2 any time soon.
The NASDAQ/NDX/SEMIS/GROWTH remain far and away the place to be as the “glamour” names continue to outperform everything. And now rumors of INTC for AVGO juicing the SEMIS even more this morning.
Just below that continues to be the FINANCIALS as the regionals have moved into new high ground and now some biggies are doing the same.
This past week, the Dow, S&P and now the small caps all jumped back above the important 50 day moving average.
The Transports are now back sitting on the 50 day.
New highs finally expanded. New lows contracted.
But not everything is rosy.
About 55% of all stocks are still in poor technical shape. That’s 55%.
Many countries continue to act terribly especially many European countries.
Interest rate sensitive stuff continues to act horrid…Housing. Utilities. Real estate.
Energy remains bearish though we think it bounces with the market here.
Shorter- term, markets are again overbought but that is a 1 on a scale of 1-10. Notwithstanding pullbacks, the NASDAQ/NDX/SEMIS and TECH continue to lead in a big way and would stay with that theme until things change.