TECHNICALS - JOYG

The metals are getting crushed today but is this the pullback to buy? I suspect the answer is yes and the reasons have been stated many times; commodity cycles last a long time and this one only began about three years ago. JOYG looks good on this ugly pullback as its fundamentals are very strong, but I am waiting for some price stabilization.

The oil service sector also looks good here as the OIH is now about as oversold as it gets over a short term period as it is down $17 from a $170 high on Thursday. Again, I will wait for some price stabilization.

The market internals continue to underwhelm as there are still 1,800 more losers than winners in spite of a flat DIA and SPY. The Semis have given it up also as the SOX index is now down almost 1%. On the brightside, the 10 year Bond rate is back under 5.15% so maybe equities can get a bid on the heels of lower rates.