BIG PICTURE

Off the subject for a second, we give it a 99% chance Howard Schultz will be running for President. 2020 is going to be quite interesting.

NASDAQ/NDX/TECH/INTERNET/”GLAMOUR NAMES”/SOX all coming on as the NASDAQ/NDX broke above handles and into all-time closing highs. Not sure we need to add more except to say pullbacks preferable…but momo is momo…and we are starting to get momo as names emerge from trading ranges. Keep in mind, for their size, names like Google, Amazon, Apple, Netflix, Facebook and others have extraordinary growth rates.

RUSSELL 2000 also still leading.

S&P behind the RUSSELL but it also broke above near-term resistance.

The DOW remains the lagging big indices…but for us, this is fine as we would rather see risk areas leading. Also, names like GE are an anchor to the DOW.

Big FINANCIALS still not happening. So far, not affecting what is working…but to be watched. Feels like when markets go up, they lag and when markets go down, they lead down.

Seeing a bunch of RETAIL emerging as one of our other recent themes plays out and that is we think ENERGY prices have topped for now. Seeing a bunch of ENERGY names actually breaking down badly. Only good news if energy prices come down.

The Atlanta Fed is now coming out and telling everyone what we have been telling everyone for weeks and that is the economy is accelerating this quarter. They actually have GDP up as high as 4.7%. We’re not so sure it is that high but we will take anything above 3%…with 4% as gravy. We are in hopes this stupid trade stuff does not get in the way. We do not understand the thought process and the way they are going about it.