Markets were a bit bifurcated Tuesday with the leading Nasdaq gaining .4% and the S&P 500 falling by .15%. A firm Nasdaq is normally a good sign as it is perceived to be more of a “risky” benchmark and shows enthusiasm among participants. It is maintaining altitude above the round, psychological 5000 number. Energy and transports reside mostly on the S&P 500 and that was part of the reason for the underperformance. CP had a wild day after earnings were reported this morning recording a bearish outside day. Peer CNI gave an upbeat report yesterday rising 2.5%, but take notice of the very wide and loose action on both charts which are hallmark bearish traits. You want to see tight trade. Perhaps the CP release should not have come as a surprise as NSC lowered guidance earlier in the month. Another important group which demonstrated poor action today and have a pulse on the genuine health of the economy were the packaging names. PKG fell 10.4% Tuesday after reporting earnings “delivering” an undercutting of its 200 day SMA as well. It was its second straight earnings miss which suggest perhaps a pattern. One miss can be excused, 2 in a row and questions have to be asked. It fell 6.4% on 1/27 although it did reverse nicely that session, no such luck today however. Former best of breed name KS is now in bear market mode lower by more than 20% from recent 52 week highs and is up just 2 sessions in all of April. Too much bubble wrap, well forget the puns with that reference……….

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