Market Alert - Last Hour

Oil continues flopping around like a fish out of water, breaking below 40/BBL (39.99, -1.61). That raises the specter of that $26.10/bbl price on the last low and oil stocks, after looking chipper enough through Friday, are selling.

Stocks are overall showing more of the same, that flat line, lateral movement. Same action that led into earnings, the FOMC meeting, and the BOJ announcements, and the same continues. At least for SP500, DJ30, RUTX, SP400.

NASDAQ continues its gains as its big names perform upside. SOX is flat but looking quite good in a 3-session pullback testing the break to a higher high.

SP500 -6.62, -0.30%
NADSAQ 12.12, 0.24%
DJ30 -59.23, -0.32%
SP400 -0.42%
RUTX -0.09%
SOX -0.07%

You could say the indices are out of gas, having moved higher then unable to push further despite several events that in themselves and definitely as a group could have jumped stocks back upside. Their inability to make that move is somewhat telling. Are they now waiting for the Jobs Report as well? Doesn't seem all that likely.

Money is moving to some areas such as those large NASDAQ names as well as biotechs, but it is not that widespread. Chips are resting, not a bad situation for the market as once they finish they will be in position to lead higher once more.

Some plays are moving well and we are letting them run higher to build in more gain before we bank some more. Others are struggling for sure, oil stocks of course, but also some drugs, consumer discretionary. Moreover, the market is softening up more into this last hour with oil leading other areas lower.

Will see how some plays we are looking to enter close, e.g. some precious metals including HMY. Some chips are already moving, e.g. SIMO. We will see what they show toward the close.

ISM missed for July: 52.6 vs 53.1 exp vs 53.2 June

Construction missed for June: -0.6% vs +0.7% vs -0.1% (from -0.8%). I guess they had to revise it to help make up for the 1.3% swing from expectations to the actual.




Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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