Markets enjoyed another solid session Thursday as the Nasdaq made it a third consecutive gain and the S&P 500 creeps ever so closely to all time highs. Will be very interesting to see how the index reacts just above 2093 high made earlier this year. Going into Friday the S&P 500 is up 1.6% after last weeks hefty 3% gain and the Nasdaq has risen 2.3% so far this week following last weeks 2.4% move. If this pace keeps up and it could change on a dime, the January barometer could be falling out of favor. We know from experience that once a model becomes to widely followed it loses its relevance. We recorded a down January this year as well as in 2014, 2010, 2009, 2008, 2005 and 2003 and only one occasion did the markets fall further the rest of the year. Despite the jubilance today some groups were hurt via earnings plays. The restaurant group has been struggling under the radar lately and today more evidence was put forth as PNRA and CAKE fell by 11 and 7% respectively. You will recall CMG has now missed numbers back to back. Old favorite CBRL sliced its 50 day SMA in huge trade, often a red flag, and dropped 8.5% during a 2 day span between 2/6-9. Speaking of food some more pure plays have been hit as well. K and THS were knocked lower after reporting by 4.5 and 8%. Even best of breed DPS reversed today recording an ugly outside day falling 3 handles from all time highs. Is this signaling an “appetite” for risk back on, pun intended?

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