Weekend report!

Random thoughts:

Now entering the midst of earning’s season. Friday’s financial earnings were ok with financials gapping out of range, only to be pulled in. We received a ton of emails that the move was negative. We will hold off until Goldman and the rest report. Financials remain range-bound just like:

The major indices remain range-bound and about as tight as we have seen. In fact, the Dow has been trading within about 1% for the past 5 weeks. Tight ranges are easily identifiable and now we wait for the next move. THE NEXT BIG MOVE WINS. A break above the upside and another leg up. A break below support and we finally get some sort of corrective work. Duh! For the Dow,  use that big round number of 20,000 heading up and 19,718 to the downside, simple as that.  Use 2282 and 2232 for the S&P.

The NASDAQ and NDX continue to get money flows as the FANG has been unleashed since the new year. Mega-cap tech/internet that acted so poorly into the end of the year have all woke up. You can include Tesla, Priceline and a few others to this move. Keep in mind, earnings coming out soon for all.

Sentiment is off the charts bullish…which as a contrary indicator is potentially bearish. When everyone is in and everyone has bought…you get the hint. Keep in mind, sentiment is not a pinpoint indicator. There is usually lag time. It is folly to get too bearish until support gets taken out.

Even though major indices are near highs, the new high list has contracted markedly. Not sure if this is meaningful yet because if major indices break out again, you can expect this number to expand again.

We keep hearing the mantra “buy the election-sell the inauguration.” Maybe this will come to pass but we would rather, as always, let the market decide.

Lastly and we couldn’t help ourselves…we have been writing and talking to you about our expectations for the reaction to the Trump presidency. We told you the media nor the other side would give him any chance whatsoever. We told you the media would be giving him a daily colonoscopy after spending 8 years not curious, not investigating, under-reporting and not reporting on the Obama presidency. Well, it has all come to pass. This made-up Russia stuff is just that…made up. This would not even be a story if the other side won. But now they drive to the hoop with it every day. Why? Simple. It was to enable the other side to delegitimize the new president. And who to lead the charge than Rep Lewis because how dare anyone take issue with what this man says? Does anyone care that he didn’t show up for Bush’s inauguration? Has the media covered what he said about McCain or Romney? Of course not because then everyone would know this has nothing to do with anything but the fact one side lost. This was completely planned out from the get go and now over 30 Dem reps are using all of this to NOT show up. Here’s our thought. Don’t show up. Show who you are! A bunch of whiners who cannot stand the fact your side lost. You say the election was not legitimate. Well, we have read a lot of the wikileaks. We think the DNC head passing debate questions to your candidate is not legitimate. We think sending people to incite violence at the other side’s rallies is not legitimate. Of course, the media dropped that in a nanosecond. It never changes!