WEEKEND REPORT-REMAINS A SPLIT TAPE

The tape remains split. We have taken pains to tell you what to avoid. You know the areas and you know the names. For a change, we will ignore the bad today and just write about what’s still working, what’s looking to work and anything else in shape.

The new high list is laden with airlines and housing. Yes…airlines and housing. We guess it is about low oil prices and continued low rates. We have seen nothing that tells us this won’t continue.

With airlines strong, the TRANSPORTS act well. You can add the rails to what is helping the transports out as well as strong FEDEX.

The DOW, S&P and the NYSE look just fine. All pullbacks have been contained by the 50 day average. The same goes for the RUSSELL 2000 which has basically been range-bound since November. These areas have been outperforming the NASDAQ/NDX as of June 9th when we told you there may be a changing of the guard.

FINANCIALS still act well off the fake stress tests. Our two favorite names in C and BK remain in shape. Others acting well are BLK, BX, CMA and a few others. A quick glance at the XLF shows a long trading range where one good day breaks you out of it to the upside.

DEFENSE stocks are breaking out. Who doesn’t like a good war?

A bunch of INDUSTRIAL names keep edging higher. XLI showing the way.

BIOTECH remains in shape off the recent index breakout.

And lastly, we have been telling you a near term top was put in on June 9th for the SEMIS/TECH and all that beta stuff. We have been giving you out important support levels as these areas worked lower. The good news is that on Friday, the SOX held the 1120 area, the NASDAQ held the 6100 area and the NDX held the 5600 area. Keep those levels in mind.  We still suspect these areas need time and price. If those levels give way, it will then be a lot more time and price.

And it is now earning’s time.