NOT MUCH HAS CHANGED!

As we enter the meat of earning’s season, as the ECB continuing to crush their own currency and even with the strong week, the motto is simply “not much has changed!”

The tape continues to remain split. The tape continues to be close to a 50-50 market in where bull and bear markets lie side by side. So with major indices popping back up into the middle and in some cases, the upper end of this recent range, let’s break the areas down.

We remain bearish on a long list of areas that frankly, many we have been bearish on for months. These groups are:

ENERGY,OIL&GAS,SOLARS,STEEL,COPPER,ALUMINUM,COAL,GAMING,REGIONAL BANKS,MONEY CENTER BANKS,AUTOS,CONSTRUCTION MACHINERY,INDUSTRIAL MACHINERY,INSURANCE,
BUILDING-CEMENT,RAILS,APPAREL,TRUCKING,BROADCASTING/MEDIA,HIGH YIELD, BRAZIL, RUSSIA and OTHER COMMODITY-BASED COUNTRIES, EMERGING MARKETS.

On the bullish side:

AIRLINES,BIOTECH,REITS,UTILITIES,PHARMA,RETAIL-HOME IMPROVEMENT, DRUG STORES, SUPERMARKETS,BEVERAGES,FOOD,TOBACCO,HO– USEHOLD PRODUCTS,ALCOHOL, DEFENSE,
RESTAURANTS,MANAGED CARE, CRUISE LINES.

A few other notes:

SEMIS are now mixed as a few names have broken down.

GOLD and SILVER continue to emerge but near-term started to pull back on Friday and thinking there is more work to do as they ran right into resistance.

FINANCIALS did bounce during the week’s rally but no change in the stance.

We have warned you to the numerous amount of “no sales” BIOTECHS that have been taken public recently. Investors have shown no regard to value as they
rammed these names ever higher. It feels like air is finally being let out so careful time. Remember, if we ever enter a bear market again, precedent
shows these companies could have a rough time of it as bear markets knock down all the curtains.