Cuando Cuando Cuando, rated number 26 on the Very Best Mariachi Songs, is one of the more recent songs in a repertoire of songs that Mariachis have been singing for the public since the 18th century.
Which is how long it seems, that this bull market has been going on.
Last night, we saw the Dog of the Dow shoveling poop-the excrement of the bears.
Today, although the Dow was still out there busily shoveling shorts into its scooper, the bears had some influence.
Whereas the Russell 2000 and NASDAQ made new all-time highs on Wednesday, today they sold off.
Typical of the 2018 market, sell or take profits when everything looks great.
Buy or cover shorts, when everything looks like…you know what.
So, is this normal profit taking into strength, or like in the song, is this a market where, the bears “can’t wait a moment more?”
Yesterday I wrote that, “IYT, my go-to ETF for Transportation, seemed well, a little constipated.”
IYT was impressed with action, but not yet 100% convinced.
Today, IYT outperformed the Russell 2000 mark to market.
In the face of IWM’s sell-off, IYT closed slightly better than unchanged.
However, it has also established a super tight range for us to watch.
On a closing price basis, 195-197 will help us determine the market’s next short-term move.
Nevertheless, the Russell’s weakness did impact other members of the Family.
Semiconductors and Biotechnology turned red.
Granny Brick and Mortar Retail though, hung onto her strength-clearly motivated by a robust earnings season in several retail chains like Macy’s, Lululemon and Kohl’s.
Regional Banks also held up well, although a bit dicier than retail, given that rates decreased.
Also notable and a topic covered in a recent Daily, the historical ratio low between value and growth began to unwind a bit today.
Considering energy is a big part of the value equation, we continue to watch supply and demand, the dollar and rates, plus, any reliable signs of inflation picking up.
Cuando cuando cuando will value become the new growth?
S&P 500 (SPY) 275 now closer support. Resistance 279-280.40.
Russell 2000 (IWM) 168 still the target if holds 165
Dow (DIA) 250 cleared so now it becomes support.
Nasdaq (QQQ) Broke the old all-time high at 175.21. Now, 174 support to hold and back above 176 a big never mind