NOT MUCH HAS CHANGED

Excellent hold at vital support on Thursday leading to the fake job’s number on Friday…which led to a strong move. The Russell held the 1080 for the 4th time in a year while the S&P held the 150 day average again. I was asked why is the 150 day average so important now. Simple…it is where this major average has held many times over a good period of time.

That all said, not much has changed. There is still a plethora of bad sectors and stocks, a lack of new highs while new lows have picked up markedly and a narrowing leadership. Even the SEMIS look in trouble here. So heading into earning’s season, there remains a few strong areas…including BIOTECH, BIG FINANCIALS, RAILS, INVESTMENT BROKERAGE, SOFT DRINKS…yes KO and PEP, RETAIL-HOME IMPROVEMENT…yes LOW and HD and not much else. We will know a lot more by the strength of any bounce…but beware! Just take a glance at the Russell 2000 and Midcap 400. They continue to act poorly.

Was traveling this weekend. Will have more meat tonight. Keep in mind, with earnings starting to rev up, expect a lot of jello moving on the plate.