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Watch It Wiggle...
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THE MARKET
This was the kind of day where there was a lot of Jell-O moving on the plate. This was another day where the Dow didn’t move, but it was a bullish day. The Dow was only up 5. The S&P, up 2 and change. Nasdaq was up 11 and the Nasdq-100 up 13…as Apple continue to do what it does.
When you get a chance look at IBB and BBH. These are the ETFs for Biotechs. Now keep in mind, there’s not really that many biotechs left that really matter to these ETFs. Go look at Amgen (AMGN). Go look at Gillead (GILD). I mean these guys have gone somewhat parabolic. Even some of the frothier names like Regeneron Pharmaceuticals (REGN), which loses a ton of money has gone from 60 to 100 and I don’t know what the news is.
Just letting know my thought process: If you buy biotechs right here, right now, you may be making a mistake. Wait for pullbacks. I have a sneaking suspicion in the days ahead that they’re going to start reining these biotechs in.
Semiconductors were strong. Housing stocks opened very weak and went positive within a half hour. Fertilizers were pretty decent.
AGAIN FOR THE 100TH TIME: WATCH THE FINANCIALS AND THE SEMICONDUCTORS
You know I always continue to go backward and remember things, and print out charts and study them.
Again for the 100th time: The turn in the Financials and the turn in the Semiconductors, show the way for the market. All one has to do is go look at when they stopped the financials from going down.
October 4th was the day. That was the day the market bottomed.
The Semiconductor Index…also October 4th.
And as THEY go, the market’s gonna go…and to a certain extent a pretty good percentage of the extent. Do not argue this fact. This is not opinion. I am now putting more emphasis on watching these areas…even more than I have in the past. They don’t fail. And we can give all the reasons. Does not matter. The fact is that the financials started turning when they announced the TARP in Europe, meaning liquefy the banks. Seems like that’s when they rallied. But we don’t rationalize. Why? We deal with what is. And they still had the bid today.
Bank Ameri-puke, they’re just all over right now. Still down 50% from the highs. So I hope you’re follow those resistance levels I outlined for you on the financials. Once they broke above…there went the market. The markets remain, in my opinion, stretched and extended with lots of bullishness up here. That said, the market refuses to pullback.
6-7 pm EST
