Markets started the week in a nervous fashion but did finish off session lows. The Nasdaq dropped .8% and the S&P 500 by .7%, but both gave back less than half of Fridays bulky gains. The bulls can state both benchmarks were off by almost 1.2% seemingly every 90 minutes after 1130am and basically put in a triple bottom that failed to break on an intraday basis. Markets were unable shrug of oil woes which lost 4% last week and dropped almost another 6% Monday. Crude is seen as an important barometer for the health of the global economy. Is it losing its luster as many declare copper is not the type of indicator it was in that regard? The XLE is now on a 4 week losing streak and looks potentially headed for a test of the round 60 number that held in August and September. It is another example of trends or things in motion tend to stay in motion and a trend is more likely to continue than to reverse. Of course some groups rallied handsomely in the face of weak oil with the airlines big beneficiaries. To my knowledge these names mostly hedge into the future so I am not sure why they rally on weakness in the resource, but again you can not argue with price action. It is omnipotent. How I like to gauge the genuine health of the market is by the amount of breakouts that are happening and the action POST the move. Case in point a best of breed homebuilder LGIH that we featured in our Tuesday 12/1 Game Plan with a cup base pivot point of 33.97. The stock broke above that session in the best daily volume in more than a year. How did it act following the move? The next 4 days all CLOSED at lows for the day and the current 4 session losing streak as the stock reeling, almost falling 25%. Monday alone it sliced the round 30 number dropping almost 11% in huge trade. Listen to the generals when they speak.

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