Markets registered gains Tuesday as the benchmarks continue their staircase up ways. Will it end in an elevator down scenario? Volatility with the major averages remains mute, and to balance the previous bearish sentence, the old adage goes never sell a dull market. The S&P 500 led the way today with a .4% gain and the Nasdaq eked out a minimal advance. Of course looking under the hood of the indexes their is plenty of temperamental action going on. A few concerning developments is the behavior of some of the more defensive groups taking on leadership. The utilities have gained ground 5 of the last 7 weeks measured by the XLU. Food stock are relishing, pun intended, some good times. Names like KRFT GIS K are behaving very nicely. Overall these groups still have a long way to go before dominating the new 52 week highs list, but is this the beginning of some rotation into stodgy sectors? That would not inspire a lot of confidence. More economically sensitive names are faltering too. Recent moves by the likes of SWK CAT and today by CMI and MWV trying to tell us something? I have been conveying a negative tone in my opening paragraph it seems for days now. Perhaps when I start writing bullishly the market will start to come in. As always pay attention to the price and volume action of the specific names you are in and filter out all the noise.
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