WEEKEND REPORT

Tale of the tape:

The DOW and S&P edge higher sitting about 1% above the March 1 high. The DOW is a wee bit stronger.

The NASDAQ/NDX hold the 10 week/50 day average after the 6/09 yonking. We are not so sure the ugly is over. Lots of near term damage has been done but again, most important names continue to hold the line. The same for the SOX. We just think there is a decent chance more time and price is going to be needed.

Much improvement in the Transports as they are now in one giant base going all the way back to December 8. Recent strong action in FDX on the breakout as well as the rails.

The Russell 2000 has improved but remains range-bound. One could also call it a big base as it sits 1% higher than the December 9 high.

Recent strength showing up in INSURANCE and INDUSTRIALS. Seeing breakouts in symbols like IR,ROK,PKG and others.

We remain bearish on a slew of areas. Namely ENRRGY, COMMODITIES, BIG RETAIL, AUTO everything, DRUG STORES, SUPERMARKETS. Seeing new breakdowns in AUTO EQUIPMENT and anything AMAZON purchase of WHOLE FOODS-related…and that includes FOOD.

As far as AMAZON, we think this is a move about getting approximately 450 new distribution centers and the real estate. We suspect  it would have cost a heck of a lot more to buy independently. Many are calling for a complete shake-up of the supermarket industry. Amazon has been a disruptor in the past so wouldn’t put it past them.  We also suspect someone may come in and bid a higher price in order to keep Amazon away from this move.