Financial Drone Strike! (NOC,DBC,JCP,LOW,SLV,UUP)

There’s been a great deal of press lately regarding a handful of tech companies and the outsized role they’ve played in goosing the market averages.   And, indeed, it’s the case that Amazon, Alphabet (Google), Microsoft, Facebook and Apple have all been climbing recently, and contributed in great measure to the success of the NASDAQ, not to mention the S&P 500 in the last fortnight.   But a look at breadth figures for the rest of the big caps shows that the big five are not alone; nearly all the index components have been pulling their weight. The percentage of S&P stocks trading above their 50 day moving averages, a rudimentary indicator of bullishness, climbed from 40% to nearly 60% in the last two weeks, as the market bumped up a solid 3%.   That’s as clear a sign as any that the market is not a mere five cylinder engine.  One hundred and sixty big-name, big-cap stocks also turned sharply higher in that period.   Negativity in the Noise   Be that as it may, the biggest five U.S. stocks have been a great bet a) since New Year’s, b) since the election, and c) going back a full…

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RETAIL GYP! (LOW,JCP,FXI)

Some worrying statistics just crossed our desk, which may or may not be fateful for the rally, but that we feel duty bound to share with you either way.   ‘May or may not’?   That’s right.  Remember, we’re now dealing with a market that has come unhinged, for lack of a better term.  Unhinged it is from most of the fundamental markers that Wall Street employs, as well as the majority of technical tools that nearly all traders have become accustomed to.   And so, in the end, there may be nothing to what follows.  The indexes now appear to have a mind of their own, and are following their own, inscrutable logic, and will likely continue to do so, just as we said they would as the final blowoff top begins. In the coming months, the zigs and zags will come at a steeper, more tempestuous pace and will careen and dive with a quickness heretofore unknown to this generation of investors.  And it will all transpire because waves of cash will enter and exit the market FOR NO APPARENT REASON!  That is, reasons will be offered, but they won’t be predicated on the traditional indications we’ve grown…

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Mortgage applications up, Lowe’s (LOW) beats expectations and Staples (SPLS) to close more stores.

Markets were heading lower on Wednesday morning after applications for new mortgages were up in the past week. The Mortgage Bankers Association reported that requests for new loans and refinancing was up 1.4% for the week ending on August 15. The seasonally adjusted index of refinancing applications was up 2.7%, followed by a drop of 0.4% for new loan requests. Mike Fratantoni, the Chief Economist at MBA, said, “Interest rates dropped last week as a result of the ongoing turmoil in Ukraine and other international concerns, which in turn pushed mortgage rates lower. Overall application volume for conventional mortgages increased. However, there was a 5.9% decline in the number of applications for government mortgages, with both purchase and refinance applications declining.” Shares of Lowe’s Companies Inc. (LOW) were trading lower on Wednesday after the company reported a rise in profits for the second-quarter beating analysts expectations. The home improvement company reported a 10% gain in net income. Despite the positive moves during the quarter, the company still lowered full-year revenue forecast. The reason? Previous expectations for the second-quarter of the year and year-to-date-sales. During the second-quarter the home-improvement giant earned $1.04 billion, or $1.04 per share. This is up from…

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