STUFF WE ARE WATCHING

A few things sticking out this morning:

For a change, oils/energy have the bid. The fact is oil prices have moved up recently while the stocks lagged. Today, the stocks play some catch-up. A glance at the OIH, XLE, XOP and you will see 6 weeks trading at recent lows. Draw a line under the lows. A break below and good night. But notice a better tone here.  The XOP actually on the verge of moving above the past 6 week’s resistance. A rally in this group helps indices it has hurt lately. We still find no leadership in the group but noting a few names trading above the 50 day. If a group is going to turn, we want to know where the relative strength is.

The same goes for commodities. Except for a SCCO, no leadership but definite better tone here. Most names remain below the 50 day with just a few names in shape. With these two areas bidding, will watch to see if the dollar is about to sell off again. Remember, the fed is today. Yippee!

Most all the semiconductor equipment names were initiated by an analyst with BUYS so they are bidding. Most just were in pullback mode.