“It’s hard to beat a person who never gives up” – Babe Ruth
I was going to head off to Sochi today, but the shower cameras and urine water turned me off at the last minute. Instead I’ll watch Bob Costas lobby for Putin’s Nobel run. Evidently the lawn gnome has pink eye.
Well if you spent your time listening to the fear mongers on the financial networks last week you probably missed a beautiful 60 handle rip off solid support at 1740. If you turn off these masters of verbal diarrhea, you will also miss all those “big hunk of love” commercials from Vermont Teddy Bear. As if Argentina was going to destroy one of the best secular bull markets in history. Emerging market money continued to run last week and hide in treasuries, (the 10 year closed at 2.67%) but $EEM is so oversold you almost have to put some away. We’ve ll seen this movie before, unless off course you missed that whole Europe thingy.
Biotech ($IBB) continues to be my “go to” sector for rallies, and stocks like $RGEN, $BIIB $CVLS, $ICPT just lit it up yesterday. All go much higher in my opinion, and you have to buy those dips.
The financias ($XLF) bounced solidly off the 200 day moving average which was a good thing. They were way oversold.
I’m not sure if the bottom is in for this market yet, maybe the 1700 level still has to be tested, I don’t know. Yellen gets the microphone Tuesday and Wednesday in her Fed debut, and she is in a tough spot because we found out Friday that no one has a job. So pathetic. This is year five of the uncovery. Tapering the taper could be very bad for market perception too.
China is on its heels and we are still the best game in town.
My best advice is to be fleet of foot as February could still be very challenging while the market digests.
January was tough for the market , but here is how my subscribers fared in a tough tape:
DXJ +6%, EVR +13%, FAS +15%, Z +14%, YELP +20%, ZHNE +20%, GMCR +8%, OMER +34%, SPLK +17%, ANAC +25%, HIMX +17%, VRTX +14%, OGXI +18%, RVBD +16%, SLXP +9%, FUEL +8%,
Performance furnished upon request.
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Good luck next week.