Continued Whipsaw

“CONTINUED WHIPSAW”

By Gary Kaltbaum
May 23,2016

First off, this week is end of month (almost) and into a holiday weekend. Typically, typically, the bias is positive.

Secondly, the loudest Fedhead who last week was teasing rate hikes in June and farther out…is now saying they can always wait! What happened to “June is a live meeting?” We are sorry to say this but they are egomaniacal nutjobs who continue to inject themselves into the markets…and one day? They just never shut up!

Our definition of the word “whipsaw” is when things are “all over the map,” “going back and forth with little progress,” acting well on Monday, poorly on Tuesday, acting well on Wednesday and so on…need we say more? This is exactly what we are getting right now and it is no fun. Give us a bull market, we are happy. Give us a bear market, we are happy. Don’t give us a whipsaw.

We would love to give you some major thoughts but except for the move in the Semis Friday, not a lot going on. We are just seeing a continuance of a nauseating trading range marked with major bear markets (retail) and hardly any bull markets. Recently, there was a relative bid in defensive areas…but they seem to be hitting a wall. (reits, consumer staples, utilities). Even the commodity areas, for the most part, continue to drip,drip,drip. We highlighted this for you right near the highs. Even gold looks done for this second.

New yearly highs? What yearly highs? Leadership? What leadership? Ok…aerospace/defense is strong, off of last week, semis look higher from last week’s move. Maybe biotechs are finding some traction off the lows. We are just not getting any real ooomph! Markets need oooomph. But right now, confusion reins as central bankers continue to twist and turn with the wind…and yes, they are running the markets right now.

The good news is that eventually markets will break one way. We don’t know when  but will be ready as markets will either set up for topside or for downside. Just keep in mind, the Russell and Nyse are trading  right where they were in late 2013, the Dow and S&P from late 2014…and that’s after this latest recovery move.