This market is a story of the have and have nots. Certainly today was a great day for NFLX as it broke out to a new all-time high. The other half is AAPL as it continues to struggle trading under its 200 day moving average. We continue to see this market struggle to push higher from a broader point of view. There are certainly a few bright spots and many being the stocks we hold and track on a daily basis. Our 4 horsemen including NFLX continue to act well. Given we are entering a historically weak period we cannot put anything past this market for now. It is clear the NASDAQ is where you want to be on the long side. Stick with strength and especially with a market like this one.
Not much has changed day over day. We continue to see weakness in the Dow Jones Industrial average. The index appears it will see a death cross any day now. With DIS weakness after hours it should put some pressure on the Dow tomorrow. Weakness in small cap names continues as the IWM is treading just above its 200 day moving average. QQQ are the only game in town at the moment and while we would love to see broader participation it is just not happening.
From an economic standpoint numbers continue to spell out weakness. The government now has to double its seasonality adjustment just to make the numbers look halfway decent. Whether or not this will catch up to the equity markets remains to be seen. Even if it does not commodities continue to paint a bleak picture for the economy. If there was a lot of economic activity commodities would be going higher, not lower like we have been seeing. Price action says it all in commodities land.
Summer trading continues to push forward. Perhaps this Friday’s job report will spark up some interest. For now, it appears we’ll continue to have a mixed market with the winners continuing to push higher.
Cut your losses short and ride your winners!
