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Virtually the entire technology sector is leading the charge higher today, which to me is a welcome change from earlier this year when silver miners and other commodity stocks were jerking us around, albeit higher. The transportation stocks are also outperforming again, which is another positive sign for bulls. As you can plainly see this afternoon, the shorts are on the run and the bulls have done an excellent job of building on Monday’s downside rejection. From failed moves usually come aggressive moves in the other direction.
I am focusing on stocks that are well set up technically, and also have heavy short positions, so as to fully capitalize on this sudden change of events to catch bears off guard. As we have seen over the past month, the market can turn on a dime. So, I am still methodically legging back into the market as opposed to coming back all-in at once.
The bottom line is that tech and trannies are back with a vengeance, and I will be looking at even more of those charts for homework tonight and in the coming days.
