WATCHING AND WAITING

The major indices once again are pointing to a higher market open.

Financials and materials were the winners yesterday. Industries that were weakest were the very ones that generally take the market higher including oil services and biotechs. And breadth was slightly negative – with the large volume early indicating that possibly players might be thinking about taking some profits. Retail investors seemed uneasy – perhaps worried that consumers, once again in July, were in “cutting back” mode.

The $USD gave back the prior day’s gain, but while the $USD may continue to slide to a new cycle low, our expectation it will not move significantly lower.

So far, though, the trend has continued to be “friend,” and we continue to look for charts with good set-ups, watching and waiting. A few that we are watching are GROW, PAAS, FSUMF, KONG and SIGA.