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5/23 Afternoon Technical commentary, and LONG IDEAS

2 hours to go,  Equities have begun to creep back slowly but surely to near Unchanged on the day (S&P down by just 4) while NASDAQ futures are now positive

Healthcare and Technology have now turned positive, so now 6 sectors are GREEN for the day, with just Financials the only sector down more than 0.60% and giving back some of yesterday’s gains

Emerging markets remain under pressure with EEM underperformance as US Dollar has pushed up further to 94.20.  Steps by Turkish Central banks in hiking rates look to have temporarily halted the slide in the Lira which bounced about 5% from earlier lows.  Transports also have recaptured about Half of early losses, and after the breakout in TRAN was given back a bit yesterday.. this remains a key area for Transports

Energy also showed some real evidence of reversal, but XLE, OIH have held the 2 day loss right at key trendlines.. SO XLE could bounce from here over the next few days

 

Overall, The sectors which experienced he largest breakouts in the last few days have been the ones weakening to give back part of their gains, but Equities are having trouble even pushing lower for 2 straight days, so it remains difficult to make much of any real selling-  Until 2700 is broken in S&P FUTURES, its remains correct to be long and use todays dip as a way to buy weakness in industrials and Financials, not to mention Transports which have all shown improvement in recent days

 

FIN LONGS-  AMTD, SCHW, V, VOYA

IND LONGS-  UNP, BA

SECTOR ETF LONGS_   XLI, XLF, XLE

 

 

Will be on Bloomberg TV at 420 to discuss EMERGING MKTS.. equities and currencies. And the LIRA and whether central bank can stem the decline