YESTERDAY/PREMARKET

More proof that the recent lows at long term support were a good low as yesterday, we moved away from support and this morning, futures getting better as we move towards the open. Major indices are going to attack the declining 50 day average. A break above would be huge. Keep in mind, lots of overhead resistance just ahead. This is all happening in the face of Syria, trade issues, higher oil prices, a daily Trump soap opera, more politicians retiring from their nauseating debt explosion and all that crap. Remember, we read price action and drown out everything else. We live by the motto: “It’s not the news. It’s how markets react to the news!”

It has not been easy. In fact, we have seen serious high volume drops down to support, gaps to the upside, reversals of those gaps but recently, it “feels” better. A bunch of growth names have turned back from the 50 day average or moved back above. Bad news is not being sold any more. Good news is bought. Can this last? Will it last? Beats the heck out of us. Just know as we enter the meat of earning’s season next week, the tone is better and beta is picking up. Of course, with a couple thousand names reporting soon, anything is possible but again, better.

And the Mets are now 10-1.

 

1 reply
  1. Matthew says:

    From a constructive day yesterday to bearish action in the Financials today. They were bought up into earning, delivered great Q1 results, then have been sold off since. A pretty bad sign of the market conditions and weeks to come perhaps?

    Reply

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