Markets were quiet to begin the week and that should be construed as bullish, given last weeks hefty gains. Both the Nasdaq and S&P 500 eked out minor gains after being slightly underwater mid afternoon. Most impressive to me recently has been the performance of FDX UPS. These two names just continue to move higher with FDX outperforming UPS on a YTD basis by a margin of 38% to 27%. Last week alone FDX rose 9%. The strength in these two names have helped the IYT to stay north above 120. The heaviest component in that ETF UNP had a disappointing week after reporting earnings last week falling 3.4%. A quick peek at the bond market ETFs and you can see the weakness in the TBT. It has now carved out a bearish a bearish head and shoulders pattern as it swims beneath its 50 day SMA. They have been under their 50 day now for about a month and retested that important moving average last week and resistance held firm. Interesting that the housing names are not catching a bid with interest rates continuing to fall. The XHB has been trading very wide and loose, classic bearish characteristics, and it seems to be finding bids near the round 30 number and the 200 day SMA.

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