PRE MARKET FRIDAY

Futures up nicely this morning. Markets have been tailing off recently but in minor league fashion as the 21 day has contained any drop. Of course, small caps are a lot worse as the Russell has broken below the 50 day as well as Transports. But until the big guys break, don’t sweat it…just know what to avoid as commodities have been breaking badly, due to bounce but breaking badly.

Yesterday, the ECB said they would continue to continue to continue. That means keep rates negative and continue to print $1 trillion/year. No really. Markets are at multi-year highs but stay not only easy but easy to the umpteenth power. Now you know why many are worried about bubbles. And yes, we are still ridiculously over-the-top easy here as rates remain at .5% on the short end…but Yellen will raise next week another .25%. Whoop-de-doo!

Healthcare of all kinds still getting the bid as even slow-boat big drug names into new high ground. Would also continue to pay attention to homebuilders.

Lastly, do not forget sentiment indicators are off the charts…but again, there is usually good lag time. We shall see.