@RaginCajun has been all over the long oil trade, and that indeed is the story of today’s session. The market is increasingly rewarding stock and sector picking, rather than macro bull or bear traders. As an example, this morning retail stocks like KORS and LTD are getting crushed even as financials, emerging markets, and industrials continue to show relative strength.
The price range on the indices is tightening, but we could easily be postponing a big move one way or the other until after New Year’s. For now, I am focused on individual stock selection without becoming too obsessed with the indices in light holiday trading. I still need to see more overall upside follow-through in order for me to become very aggressively long, in terms of portfolio allocations.
Nonetheless, that does not preclude me from playing along. Keep an eye on some runners today with momentum, such as RDN and RIMM.
http://www.youtube.com/watch?v=emdM2uX2CWA
