PRE MARKET NOTES

In spite of IBM down over 9 points…about 60 DOW points, futures up decently. Notice the Nasdaq and NDX both remain above the 50 day average while just about everything else remains a shade below. The good news is while there has been damage done, it is not of a long-term nature as just initial support has been broken. Of course, areas like energy and others are much worse but we have been telling you to avoid those areas for a while.

Housing stocks remain in good shape as rates have plunged recently. Other interest-rate sensitive areas have also been bid.

Gaps of note:

Upside: LRCX, ISRG, ASML.  MS is up about $1…in contrast to GS yesterday.

Downside: IBM

One other note: We reported to you recently some large insider purchases in GNC. Yesterday, the stock was up $1.79 to $9.03 on what we consider to be crappy earnings but better than expected. The CEO bought over 592,000 shares on 2/21 at prices ranging from $8-8.49…a total of $5 million. A director subsequently bought about $200,000 worth of stock about a week later. Just remember, just because insiders buy, it does not mean the stock goes higher. Just thought it worthy to point out again after yesterday’s action.