Dow: +437.80…
Nasdaq: -78.17… S&P: +21.28…
The Dow (+1.4%) and Russell 2000 (+4.0%) closed at record highs on Wednesday, as small-caps and cyclical stocks exhibited strength. The market, however, closed off session highs.
The S&P 500 finished with a 0.6% gain after being up 1.5% intraday, while the Nasdaq Composite declined 0.6% amid weakness in the mega-caps.
The cyclical financials (+4.4%), materials (+4.1%), energy (+3.0%), and industrials (+2.4%) sectors finished atop the standings with strong gains. The possibility of increased tech scrutiny, however, reined in the information technology (-1.8%) and communication services (-0.7%) sectors.
Investors were buying the dip in technology stocks after the open, but the rebound effort was squashed after protesters breached Capitol Hill shortly after 2:00 p.m.
Nazzy had no interest in being green today and bears watching here. If they don’t buy the dip soon we could see lower prices.
You know I reference my four horsemen of tech a lot. FDN, VGT, SMH, and IGV.
Russell squeezing further and FDN (internet stocks), one of the big drivers of the bull market, continuing lower. We have had these two trade up and down, but never with such a huge divergence. Watch this divergence closely for overall market clues.
XLF (+4.6%) exploded today because the bond market got hammered and the 10-year treasury moved above 1.0% for the first since March. Banks love higher rates.
VIX has been rising since mid-December. What was supposed to be a calm day turned into a siege of Capitol Hill and volumes were well bid, despite markets trading higher (ex tech).
Smith and Wesson popped 17%. Civil wars and bull markets are adorable.
Bitcoin up 6.0% today, never stops. The pullback will be ugly, but probably short lived.
The miners were hit early but reversed and did a good job of closing near their highs.
Energy (XLE) popped another 2.9%. I admittedly missed that trade but I will be watching for pullbacks to enter. This energy catch up trade could last a while. The chart on XLE looks very good.
Last nights highlight names did well today especially CBAT which popped 30% today.
I added VUZI today which popped then faded. 11-13 targets. Nice bull flag.
