PRE MARKET
Futures up a wee bit…but today doesn’t matter. Tomorrow doesn’t matters. What matters is one person and his minions using whatever data they see to continue easy money policies that go easier every time markets get in trouble. It nauseates us that we continue to be in central bank-induced markets…but it is the way it is. Wall street doesn’t complain. The politicians do not complain as long as it is easier money. The president had fits over a whopping 2.5% fed funds rate.
So we wait. Let us just say they had better either lower rates or state they are looking to lower rates as we think a good chance markets are expecting it now.
The S&P sitting in handle above the 50 day. The NASDAQ is below.
The SOX trades like crap. You know how much we believe in the SOX. Fundamentals have not been good.
FINANCIALS comatose but can wake up quickly depending on the fed.
GOLD and GOLD stocks strong but need pullbacks. If the fed lowers, the dollar comes down and gold moves higher.
OILS…dead…been going on for quite a while..
Small caps continue to under-perform.
Transports not good but a few airlines coming up right side. Big insider buying in AAL by several people just under $30.
CHINESE ADRs gross.
INTEREST RATE SENSITIVE UTILITIES, REITS and now HOUSING doing well. A few HOUSING names look ready but very low beta.