SHRUGGING OFF

November 20th, NVIDIA nasty reversal day. A harrowing day in where the all-important NVIDIA and the SEMIS reversed badly, taking almost everything with it. Everything broke below important support. SHRUGGED OFF the next day as the next day, the broad market woke up.

After rallying back up, markets top leading to December 17th as all the big indices break the 50 day moving average and on volume. This drop was led by the NASDAQ, NASDAQ 100 and the SOX. The next day, gap to the upside like it never happened. SHRUGGED OFF. Vicious selling turned into a gap to the upside leading to further. At the close Friday, the big indices and the SOX broke back ABOVE the 50 day moving average but just range-bound.

This morning, the DOW hardly moving but the NASDAQ/NASDAQ 100 and the SOX with another gap to the upside. This will leave these vital areas still range-bound pretty much going back to the beginning of October but much, much, much better in tone and in action. In fact, the weakest names that had been blasted got going off their deep lows. Some of those very touted names were down 50-60% at the recent lows. If the worst bounce well, the best usually better.

Reasons? That’s a great song by Earth, Wind and Fire but if you want reasons, look no further than a monstrous report out of Micron combined with what we think may be the end of tax loss selling combined with seasonality and combined with where we know the fed is going when Powell is out.

Do not forget, the SEMIS are the most important area of the market. FINANCIALS are second. If the SEMIS get going again combined with the good action in the FINANCIALS, the worst of the not so bad correction would be over. Still range-bound but after a another harrowing Wednesday, December 17th, the juice looks to be loose.

And don’t forget gold and silver still going as they crush our dollar.

Happy happy happy and a healthy to all.