Frightening Numbers From the U.S. Census Bureau

Far too many takers,  not enough makers.   More here:  http://www.cnsnews.com/commentary/terence-p-jeffrey/86m-full-time-private-sector-workers-sustain-148m-benefit-takers

It Wasn’t A Financial Crisis; It Was A Systemic Run

     Jeff Carter, at pointsandfigures.com,  posts this morning on a paper written by Professor John Cochrane.   Mr. Cochrane blasts the Fed’s handling of the crisis and calls for more free market rules in our financial system.   Virtually impossible with our current leadership.  More here:

http://pointsandfigures.com/2014/04/17/wasnt-financial-crisis-systemic-run/

Utilities Continue to Run

xlu

The XLU(Select Sector Utilities ETF)pushed further into new high ground today.  The index is now up over 8% from its early March low and is putting some distance on heavy supply near the $42.00 area.   As noted here, the XLU first broke out in mid February as it extended an impressive rally off the December/January double bottom.  After a healthy pullback in early March, which ended with a re test of key support near $39.60, the current phase of the bull run began.  As we expected the rally was slowed by resistance near the $42.00 area.   After a week and a half consolidation the XLU was poised for another breakout.  Yesterday the XLU easily cleared $42.00 on well above average trade.  We expect more upside in the near term and would use a light volume pullback as a buying opportunity.  We regard the $41.50 to $41.00 area as key support.  A logical upside target is the 2007/2008 highs just above the $44.00 area.

TIP

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Commodities Hit New Highs

dba

A little over a week ago we highlighted what has proven to be a powerful breakout in the DBA(PowerShares Commodity Index ETF).  The index has performed very well since and is now trading at new 2014 highs.  This morning’s gap higher open pushed the DBA past the March 3rd spike high as it hit its best level since September of last year.  As in the past, we expect the action moving forward to remain choppy with an upward bias.   We believe the $26.60 to $26.30 area could develop in to a key support zone as the commodity bull run continues.

Quote of the Day

“Emotions and more specifically anger,  cloud judgement”

SPY

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Stocks Stage an Impressive Rebound

nazz

The Nasdaq Composite was the weakest of the majors ahead of the strong upswing.  The Nazz reached fresh 2014 lows early in the session as heavyweights like Apple, Amazon and Google all struggled.   The downside pressure quickly eased after the Nazz hit its 200 day moving average.  This was the first test of this major support level since the fourth quarter of 2012.   The major tech index managed to hold this solid support zone, which includes the December/February lows, despite the heavy early trade in the biggest Nazz 100 names.  We are very impressed with this reversal and believe it could continue higher.   A re test of the March lows would not be a surprise.  We regard this area, just above $4130, as a key short term resistance level.  If the bulls can drive the Nazz through this layer of resistance, we may have seen a very significant low today.

“The future liabilities are $210 trillion, not $17″

  Yes, your tax bill is headed higher.  More from James Freeman at WSJ.com:

http://online.wsj.com/news/articles/SB10001424052702303663604579503191667905848?mod=djemMER_h&mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303663604579503191667905848.html%3Fmod%3DdjemMER_h&fpid=2,7,121,122,201,401,641,1009

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