Take Risks and Keep Forward

If a picture says a thousand words, this man and his T-shirt say at least that many.

In fact, anything I add might seem superflous.

I love that he carries a bowl of ice-of course, just in case the economy becomes overheated.

Nevertheless, the opposite perception took hold of the market action.

Great jobs report, no real increase in wages, an economy with room to grow.

Stepping back, once Cohn’s resignation was shrugged off, and the tariffs exempted Mexico and Canada, it was F#UCK Fear alright.

Around every corner, new fears emerge. Will Trump’s meeting with Kim Jong Un go well?

Will stagnant wages and increased debt by consumers impact the market?

Will rising rates and a falling dollar eventually engender inflation?

Will Powell seize the moment to raise rates by more than .25% and create some panic?

Pile on the questions about what could go wrong.

Heck, I do nearly every day.

However, my primary job is to report the state of the technicals.

And my friends, although there are some troublesome spots, for the most part, the market is taking risks and keeping forward.

Last week, we saw Sister Semiconductors take the lead. International Women’s Day, and off she went to new highs.

The Russell 2000 approves of the low unemployment numbers. Not quite to new highs, IWM came very close by Friday’s close.

NASDAQ 100 closed on new all-time highs.

There’s a reason we always look to the weekly charts. Not once in 2018, has any of the Modern Family sectors closed below their 50 and 200 week moving averages.

Coming into this week, only Granny Retail (XRT) and Transportation (IYT), show any signs of stress.

XRT is in a warning phase. IYT in an unconfirmed bullish phase. IYT needs a second close above 194 to confirm. XRT hasn’t gotten that far.

What’s the takeaway?

F#UCK fear until it F#UCKS you.

Plus, always keep a bowl of ice on hand, in case things get too hot.

S&P 500 (SPY) Most of the action was in the indices with a couple of exceptions like Netflix and of course SMH. Emerging markets are helping too. It looks like a case where SPY played catch up. Now, 275 important to hold and this needs another 3% run to match the all-time highs.

Russell 2000 (IWM) 160.63 the all-time highs. But whats even more important, is if it holds 156. As long as that level holds, this could consolidate and then blast off.

Dow (DIA) Looks like IYT-unconfirmed bullish phase. Needs a second close over 253 and miles to go to the highs

Nasdaq (QQQ) 170 support and resistance will be when this stops. Uncharted territory. Unless, it craps out Monday-that would be interesting