Breadth is at only 68% and all of the economically sensitive sectors, like airlines, semis, and cruise ships, that have been hit by fears are not participating, at least not to the degree you’d expect on a +750 day. More importantly, and I cannot stress this enough, the 10yr bond is not rising in yield, now 1.08%, down 5bps.
The net result is a feverish rally in DIVIDEND STOCKS. You know, the sort of nonsense you’d never look at: CLX, ED, PG, and KMB. While the markets look fantastic on a superficial level, underneath the surface ZEN is down for the day.
The trade is simple, stay small and bet against this rally on an intra-day level. Should it hold, close out the trades and get long shit that didn’t rally today. Often times the real move is the day after the initial burst, as the wall of worry crushes in the helmets of weak shorts caving into obscurity.If you enjoy the content at iBankCoin, please follow us on Twitter