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The strength of the past few sessions is persisting this morning, as bears suddenly find themselves scrambling to cover shorts. I have been adding more long exposure since Monday, given the number of charts that have shown impressive progress. The retail/consumer discretionary plays are among the best performing, and the airlines look to continue higher after Monday’s “up on bad news (hurricane)” phenomenon. It is also important to keep an eye on the transportation stocks, as they had been lagging for a long time. The bulls need them to act better, and they are doing just that today with relative strength. Note on the chart below that even as the broad market is fading at the time of this writing, the trannies remain at or near session highs.
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