WEEKEND NOTES!

We do not believe these notes were hacked or tapped!

Still not a lot of complaints. In fact, we were deluged with reports from pundits who are saying the market is about to be smoked. No…not kidding. Maybe they are right. How about a 1% drop first.?

The complaints:

Sentiment is off the charts bullish. One of the measures we follow closely is at its highest and most worrisome figure in over 30 years…that being Investors Intelligence survey of bullish market advisors that up over 63%. On top of that, the VIX remain low and refuses to break out to the topside. On top of that, Snapchat came public at by any measure, ridiculous valuations indicating froth. But again, sentiment is a secondary indicator and also not a pinpoint indicator. Most often, there is lag time before it affects the market.

New highs are woeful considering the big up day we had this past week indicating that maybe, just maybe, market leadership is thinning out.

The Russell and small caps continue to under-perform and are now close to sitting on the 50 day. Other indices remain extended.

BUT that’s about it. Markets are stretched and extended so a pullback would be normal at any time. It is more important to stay in tune with what sectors are doing their thing.

BIOTECHS continue to get the bid as a few names have moved out with BIOTECH ETFs moving above resistance. Other healthcare areas remain in fine shape.

HOUSING continues to come on as a few names have broken out of range.  UTILITIES and REAL ESTATE continue to act better also.

The all-important FINANCIALS give nothing back and remain tight in here.

GOLD blah and GOLD STOCKS even worse. It is normally bearish for the metal when the stocks are weaker than the metal.

OILS still aint happening. A few act better than most but there remains very little in the way of big strength.

Just be in your guard. The trickiest markets are when everyone is comfy because there has been no correcting in four months. It is at that point in time where many think the market is omnipotent that the market bites back. But until we see more than a measly 100 point Dow drop like we had late last week, it is silly to jump that gun.