Overnight there were dismal economic data out of China, but like magic hopes of stimulus from the most populated country helped send its markets higher. Like a trickle-down effect world markets followed suit. US futures were certainly higher reacting to world markets. Buffett was on CNBC saying “stocks will be much higher” 5 to 10 years from now. The bulls were out in full force trying to pump up the world markets. Commodities rebounded as Corn and Coffee futures led the way. AAPL helped the market push higher as it was up over 4 points during the session. Volume was mixed as NYSE saw turnover rise while volume fell on the NASDAQ. The close was not desirable, but we were able to close above the open. Today was far from impressive, but we are not going to argue with gains.

It is hard to tell if today’s rally is of the “dead cat” variety or not. Our heavy hitters: FB, NFLX, AMZN, SBUX, and PCLN were not all that impressive. FB continues with its weak action from last week while PCLN is still trading below its gap from earnings last week. SBUX is not acting well with heavy volume the past few days. Today is just one session. However, we expect our leading names to be acting a little better than what we are seeing today.

Check out AMZN, FB, and NFLX:

An interesting IPO, reporting earnings this week is BUFF. Hard to imagine a pet food company going public, but it is setup in a nice pattern here. Earnings are Thursday so it would be wise not to be holding into the report. Do not avoid a few day bounce as it is certainly poised to push higher here. Keep an eye on the stock intraday.

There is lots of talk regarding the Federal Reserve hiking rates after their September meeting. A quarter point rate hike would likely not be the end of the world, but it is still hard to imagine Yellen having the fortitude to raise rates. Inflation remains painfully small for the Fed regardless of what the true inflation figure is and not to mention it fears a market meltdown over just a quarter point hike. Last year many feared the end of QE and we have somewhat been able to hang in there without it. It certainly helps to have the ECB printing Euros too. Price should be your guide rather than guesswork what the Fed may or may not do.

An interesting ad popped up on a website many of our platinum subscribers read:

If this doesn’t scream “SCAM” we are not sure what does. 99% win rate sounds too good to be true, because it is too good to be true.

Cut those losses quick.