PRE MARKET
-We changed our stance yesterday morning. We believe at the very least, a near term high was put in. We say this because:-
-That was one heck of a counter-trend rally. Markets do pull back.-
-We started to see some breakouts fail.-
-We started to see oils, financials, biotech and other areas roll over. This simply means they all stalled at an area for a few days and then broke below that area.-
-Important names that acted poorly off of earnings getting slammed. Names like Amazon, Netflix, Tesla and a few others are no longer leading up but actually leading down.-
-Fundamentally, you are seeing numbers that we thought would show up. Europe, if not in recession, is quite close. Japan is contraction. China? Who knows what China’s numbers are but lets just say if things were great, they would not be easing like Bernanke and adding a whopping $83 billion to the system in past weeks.-
-Again, this does not mean the end of the world is at hand. As of this second, it is just a pullback. It can last a few days and be shallow but…markets recently have had a way of not ramping or pulling back in a small fashion…so pay attention. And do not forget, we are certain that if markets get hit hard, we will be hearing rumors of Powell lowering rates as again, it is all about the markets to these easy money nuts.-
-Lastly, this weekend, in our usual charming fashion, we will take on AOC and the coverage of AOC by the media on this “Green New Deal.” Do not miss it.-