PRE MARKET

Futures flattish except for BIIB up $82 on drug news. Speaking of that: ‘Gary…was there any way of knowing if BIIB would be up $82 this morning and make money off of it?” Answer: Not without going to jail.

Internals are improving. All the comatose areas are improving. All the areas that lagged for months are improving. DO NOT FORGET. JAY POWELL IS NOW IN FULL QE…”JUST DON’T CALL IT QE!” We are actually surprised the big 4 have not broken out yet based on this but today is another day. DO NOT FORGET! For almost 11 years, markets have loved easier money. DO NOT FORGET.

Market was cracking into the end of December. Christmas eve day…Mnuchin makes call to Powell and the “President’s working group on markets” On Christmas eve, Powell floats a change of stance leaking he can go from “raising rates a few more times in 2019” to “patience!” Market immediately bottoms. Markets rally into end of April.

Markets drop 6-10% in May. Powell leaks another change of stance from “patience” to “lowering of rates!” Markets immediately bottom.

Markets rally for a few weeks. Markets then have a small top. Powell leaks “more rate cuts are “desirable!” Markets bottom.

Fast forward to the past couple of weeks. Major indices are where they were 18 months to 30 months ago. How to get them moving again? “QE BUT DON’T CALL IT QE!”

So we are on the balls of our feet. Not because earnings will be down year over year. Not because of the nightmare in DC. Not because of guidance but because of AGAIN…easier money by the continued bubble making machine. We now watch the see if the big 4 can indeed break out.