WEEKEND REPORT- HELLO IRMA!

Hey…how’s your day? As I write this from my hotel room near Disney at 830 pm et, we are being battered with gusts about 75 mph…and feel lucky. Talked to my bestest of friends in SE Florida today…hit with gusts over 100. One had two big trees on his roof…and that’s for starters. Watched SW Florida…yikes! I must tell you I have been through a lot of these but not sure as I watched Fox News and the magnificent Shepherd Smith today have I ever seen a storm cover the whole state. One can correct me if I am wrong but don’t think we have seen one this big. The family is quite happy we made the decision to go to a big resort hotel as we found out we lost power at home. And my dogs Cosmo and Winston are thrilled as there must be 200 dogs in the hotel. The drive to the hotel felt like the end of the world as I think I could count on both hands how many cars were on I-4 as we made the drive to the hotel.

We have now been quarantined in our rooms until 8 am. There is a lot of glass windows in the lobby as well as the roof. Just sending big wishes and prayers to all affected here in Florida and of course those affected by Harvey. I suspect we will wake up tomorrow to lots of damage. Kudos to Governor Scott as he showed great leadership this whole week. Many were already planning for the hurricane last weekend.

As far as markets, just letting you know this is exactly where markets have been holding the past few weeks. Tease the downside and hold. Tease the downside and hold. I would not be surprised if we rally off of it but am suspect to how much we can rally when financials are acting so poorly and internals have been on the poor side. But again, if they can’t send em down when they are weak…

As far as financials, it is important to note the group is one of the two most important groups we follow, the other being semiconductors. Both are great harbingers of things to come. I am not sure I have ever seen a market hold up when both are in bad shape. The SEMIS are still hanging in there but must be watched as they are not trading as well as they did a couple of months back.

Noticing a few things showing up on the radar.

Drug stocks…yes, some of those stodgy drug stocks are now breaking out, joining the recent move in BIOTECH. I don’t think they can go much as growth rates are basically nil.

Utilities…a bunch into new highs with others about ready. Look no further than a 2% 10 year for why.

Gold and gold stocks continue to shape up but now need some pulling back or some rest.

The Giants game about to start. Looking out the window seeing a big palm looking ready to keel over. Stay well! Stay safe! And as I have been saying every day at the end of my radio show since the Columbine incident…MAKE SURE YOU HUG YOUR CHILDREN! Has even more meaning this weekend!

 

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