Markets continue to confound the most, I being one of them admittedly, with the benchmarks screaming higher Wednesday. The Nasdaq rose 2.4% and has now incredibly recovered 300 handles off the intraday low last Wednesday. The S&P 500 put up a very nice showing as well gaining 2% and recouping 121 handles from its lows last week. For the week just two days old the Nasdaq has advanced 3.8% and the S&P 500 by 2.9%. All the talk of the 200 day SMA resistance in both indexes was just useless noise. Perhaps it is time to take a look at the SDS again as it approaches its 50 day SMA very rapidly. The ETF stormed above that line in January, then petered above it in April and again in August, before rocketing above it again in October. This time it jumped above its 200 day SMA which it had not accomplished dating back almost 3 years in November of 2011. Notice how it quickly resumed its downtrend each time and is lower by almost 6% this week after its first 4 week winning streak since the summer of 2011. Energy has been recapturing some heavy recent losses and the group was the best performer today up 2.5%. Many charts still look broken in the sector, but some names are beginning to carve out bases with trigger points. That is a welcome sight as it has been rare. TDW looks worthy of a look.
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