WEEKEND NOTES

Last week, the market simply sat. There is nothing wrong with the market sitting quietly, even into earnings season. But one thing that sticks out for us is that while the normal bulls are still out, we are surprised by how many bears are out there. One hedge fund announced they sold all longs. We are constantly reading how the economy is topping, the yield curve is going to invert, earnings are peaking. tariffs are going to kill the goose…the list goes on an on. But quite surprising and maybe a good thing that so many are bearish.

For sure, plenty of areas are still not working. We have highlighted all those areas for you. But for the most part, major indices act ok…a lot of range-bound action but for the most part, act ok.

The NASDAQ/NDX/RUSSELL remain the strongest. The S&P less so. The DOW remains the weakest.

TRANSPORTS, FINANCIALS, INDUSTRIALS,  MATERIALS again range-bound.

Most EMERGING MARKETS are another story. While improving off lows, still relatively weak.

Sit, relax as markets wind their way through this action. So far, it has been nothing more than a working off of the move from the election to the highs of January. This is quite normal if the market is going to break out again in the future. Of course, if the long-term lows that were tested recently give way, we will have another story for you…but as we have told you, we do not expect that to happen at this time.