Markets demonstrated today why it is hard to make money consistently on the short side. Two negative CLOSES last Friday and Monday below the critical 1950 level, after trading above nicely intraday, and one may have bet that today would be a session that the bears would eat their porridge. Tuesday was anything but a feast for the bears. We point out we were WRONG yesterday in our assessment that the VIX looked like a good place to park capital. With that index below 20 bulls are certainly in the drivers seat. The Nasdaq sprinted ahead by 2.9% and regular readers know how we discuss the importance of the tech index leading. It reclaimed its 50 day SMA Tuesday a bit behind the S&P 500 which did so last Thursday. The big beta names gave the Nasdaq a nudge as PCLN, AMZN and GOOGL all ran higher to the tune of 20 handles give or take. Semis acted well as the SMH climbed above the round 50 handle late last week and now is wrestling with its 200 day SMA. An unfamiliar group joined the fray today with the finnies swimming upstream with the current seemingly at their back. Perhaps Jamie Dimon knows something about timing the group as it was reported on 2/12 that he purchased almost $27 million of JPM and that session gained more than 8% recording a bullish morning star pattern. The consumer discretionary names are beginning to outdo their staple counterparts and today we received results from KATE not leader by any stretch of the imagination, but even with soft guidance the stock rose better than 11%. LVS is on fore with a hefty yield to boot and below is the chart of PNRA and how it was presented in our Monday Game Plan. All time highs in this environment not to shabby.
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