Earnings time!

As we move into massive earnings and another fed week where they will say blah blah blah, maybe maybe maybe…markets remain range bound but possibly a couple of changes occurring.

We have been negative on gaming for almost a year. The group has hardly teased a change in trend. Earnings are coming out this week for a few names but a quick glance is showing the possibility that the past 6 weeks of reverse churning combined with Monday’s action is potentially putting in some kind of low. To be watched as earnings come out.

And energy…you know the story there. This is not about the price of energy but the underlying stocks. We are now seeing a definable “double bottom” pattern where so far, the test of December’s lows is holding. There is still plenty of work before things turn but just noticing the stocks now outperforming the commodity. Will need a few more cards coming out of this deck.

We have always had a motto that if they can’t sell them off, they were going higher. So far, the major indices, despite the 50-50 tape, continues to hold in nicely. We suspect the indices will show their hand soon enough. Just thinking!