Market Alert - To the Close

The stock indices closed mixed but there are some strong moves in some leading groups such as biotech, chips. So yes, we did pick up some positions today, but they are on strong movers that were solid even Tuesday. At the same time we closed some positions that were not rebounding with the rest of the market.

SP500 4.43, 0.19%
NASDAQ 27.81, 0.48%
DJ30 -6.71, -0.03%
SP400 0.17%
RUTX -0.07%
SOX 1.10%

We anticipate there could be more of a bounce into the House of Reps' vote tomorrow and thus are letting those stocks that are bouncing continue to bounce. There were enough votes to kill the bill, then a Freedom Caucus member said he would support it, then a black cat crossed the road . . . you get the picture. Still anticipating using a further bounce to exit unless there are some strong moves, strong as we are seeing in some of the recent leadership groups.

London terror attack tells the same story that we have seen unfold with unfettered immigration. Only after the cows have left do countries such as Denmark and Sweden realize they have made a horrible, culture, heritage, and perhaps country-ending mistake.

House Intelligence Committee (an oxymoron?) Chairman Nunes, on his own, discovered that intelligence agencies were indeed surveilling Trump Tower, the Trump transition team, and perhaps Trump himself post-election. It was likely just part of surveilling contacts with foreign agencies and individuals, but the other side of the conversations were supposed to be masked but were not, a violation of the law. Wow, our intelligence and government agencies violating laws they are sworn to uphold. Imagine that?

Overall a very modest relief move from the Tuesday selling. Again, we let positions that were recovering off early weakness and showing doji at support continue to work into Thursday ahead of the House vote. We closed some, will close some more on a further bounce that is anything short of very solid. At the same time there are great sectors working and we picked up a few great movers today that held up during the market turmoil and then rallied once the Tuesday turmoil was over.

Unfortunately, that was not a large market segment. The rest of the market was hammered and came up for some air Wednesday. We will play a further move higher to jettison laggard positions and any that are not showing clear strength. Then we see how the House votes.

Have a great evening!



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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