Markets roared forward Wednesday as Helicopter Ben assured benchmarks that printing will remain in vogue as long as necessary. Only problem, volume did not get the memo. I have been wrong since heading to the sidelines last Thursday, and watching today’s mini melt up was not easy to digest. But the chaotic manner in which many sectors, and indexes, have been trading is discouraging. Home builders sharp move higher today after robust pending sales, seems synonymous to a deer being hit by a hunter. A last gasp of strength if you will before succumbing. The industry that carried the markets upward on its back is wounded. However, I have to accept the fact that the market may continue higher, and perhaps the baton will be just passed onto a new group to assume market leadership. Energy stocks may fit the bill. Both the XLE OIH both received stout support exactly at their 50 day SMAs yesterday, with volume to back up the move. COG is looking great, and both ATW FTI retested prior breakouts almost precisely before advancing further. That scenario would most likely have to be met with a weaker greenback, which could be happening. The UUP has a valid double bottom trigger of 22.40, and is just above its 200 day SMA it reclaimed Monday. It is pausing here and I am watching eagerly.
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