There's Your Answer

I’ve never seen so many “blah” earnings reports in stocks that go higher. Seriously. Go figure.

We’ll call it a stalemate day. But out of days like today, there are some things I’m seeing that I want you to know about.

The bottom line is that the major averages are all above the major support areas that I told you about in the past couple of weeks. As long they stay above them, GOOD.  They are stretched and extended to the upside now, which means they are away from the norm. Normally, when this happens, eventually they’re revert to the norm – meaning their 50-day moving averages. Whether or not it happens now…I don’t know. The Dow is a stone’s throw from the old high. Others not so close.

Remember I told you about all these triangle patterns in the major indices…if they break above it GOOD, if they break below it BAD. Well the XOP (The S&P Oil & Gas Exploration & Production ETF) looks like it’s breaking above a triangle here. Which means it may be playing catch up with the rest of the market. I just noticed one name. This is not a recommendation. Noble Energy (NBL) broke out of a one-year base on significant heavier bottom. That would be the name to attack if this is going to go higher. We shall see what happens.

Natural Gas which is UNG (The United States Natural Gas Fund), which has been in a major bear market, I think had its biggest volume day ever today, from a very stretched and extended condition to the downside. So near-term I would suggest to you that the worst may be over for that.

I received 50 emails on Netflix stock in the past two weeks. Netflix when from 60 to 100. Frankly, it went from 70 to 100 in four days. The stock went from 304 down to that 62, before sitting around and then moving up. Netflix, in answer to all those emails, is going to lose money going forward. They’ve announced they’re going to lose money going forward. I don’t like buying companies that lose money. There’s my answer. 

6-7 pm EST