WEEKEND NOTES

The French election has passed and supposedly the market friendly candidate won. Terrific.

We wish we can tell you a lot is changing but we will just have to continue to bore you. Not much has changed.

Major indices remain in good shape with large cap continuing to lead small cap. The good news is that the Russell 2000 held the 50 day average on Friday while the S&P broke out into a new closing high. The DOW needs a little more work as a few earning’s blow-ups have held it back. Of course, the NASDAQ and NDX remain the strongest as big cap tech/internet continues to lead the way. If we had one complaint about that it is the fact that fewer and fewer names are working in the NASDAQ/NDX as the money flows into a few big names that have big influence on the indices.

Notwithstanding oversold bounces (we may be in the midst of one), we would continue to avoid just about everything commodity like energy, oil&gas, gold, silver, steel, copper, aluminum, fertilizers and all that stuff. We would continue to avoid just about everything autos except a name like FERRARI (RACE) and the big money loser TESLA (TSLA). We would continue to avoid most big retail. We would continue to avoid a lot of the real estate area (but not all). And lastly, the transports continue to lag though we are now starting to see some of the airlines shaping up.

Other than that, again, no complaints on the major indices as we are through a lot of earnings season. In fact, we have seen a lot of blow-ups but the good news is that we have seen a ton of good reactions.

We will have much more to wrote if things change.