So the Dow, SPX and Nazzy all made more new nominal highs today. Yawn. The Russell 2000 is bull flagging too, and I don’t think that’s done going up.
Tax cuts are still getting talked about in a positive way, but you know how I feel about how the clown people in Congress might figure out a way to screw it up come crunch time, but for now, the banter is positive.
It is also helping the market because Rocket Man has moved off the front pages. If you don’t believe me then look no further than the Sout Korea etf (EWY) which made all-time highs today. It’s a good sign that this is behaving well as these are the first folks to get nuked if Rocket Boy has an episode.
Word got out today that Trump told Congress that he wanted to increase our nuclear capability tenfold. This turned out to be fake news. So much nonsense. Everyone wants to be the first to break a story, so due diligence goes to the back of the bus.
After rallying off their Aug.21 lows, retail (XRT) is starting to show its true colors again as it is breaking lower. I am already seeing short opportunities in this space. FOSL, FINL, BBY, BBBY, BURL and SIG to names some. Sell-side volume is picking up on XRT and all the technicals have started to cross down.
Biotech (XBI, IBB) is meandering sideways as it works off some recent giddiness. Our best bio performer today was SGEN which printed some positive drug news before the bell and popped 6.5%.
Portfolio names did well today.
New name from yesterday, ABUS, also had a decent little follow through and popped 5.5%.
FPRX also had a nice pop of 4.7% today.
I added KMX as a short today. The chart looks OK but it is extended in my view and the MACD, relative strength and stochastics have all crossed down which can sometimes be a precursor to price also falling.
$EWY, $IBB, $XBI, $FPRX, $ABUS, $FINL, $SIG, $XRT, $FOSL, $BBY, $BBBY