An Important Day Setting Up
We should get the sell-off to at least the S&P 837 level today. What is different from some of the other sell-offs the market has had over the past few months is that in our opinion from comments, speculative sideline money has got the message and wants to get on board. This is their opportunity. This is a different kind of buyer than the long-term players that we have seen up to now. They are inflation believers, short-term, and speculative players.
You will know if they are really starting to get involved when you see three things, the GDX and GLD ETF’s start to move up and the S&P trades up to 847.
The most important thing is the way Intel is downplaying and handling their outlook, they will be one of the big beneficiaries of the “Green Revolution” and when this build out starts this will be one of the runners.
And autos, this area is getting primed. Our view is that GM will pull it out without bankruptcy and a completed Fiat-Chrysler deal will be a ground-buster with all the technology the Chrysler has assimilated from its affiliation with Mercedes.
The EMA ETF Fund Nav was 1060 at yesterdays close.
8:14 AM CDT