Back-to-Back Bear Cooker

The market is putting in a solid continuation rally today. I suspect again that most people were ill positioned for this rally.

The SPX is up more than 2% this week, while the COMP is up more than 4%.

Many of the indexes are breaking above their 50-days, or extending their moves above them. Most notably are the biotechs (BTK), semis (SOXX), retail (RLX), and small-caps (RUT). Chips are up another 4% today.

Energy stocks are lower again as oil continues to fall ($71.90). Bond yields are also significantly lower (4.87%), and well below the 5.25% fed funds rate. I bet my boss that the next Fed move will be to lower rates vs. raise them again.

Homebuilder sentiment hit a 15-year low yesterday. I also saw more signs of slowing price appreciation in many of the nation's hottest markets. I will post an update on the NAR report later.

And most importantly, growth stocks have started make strong moves. These trends are likely ingnored initially, but then as performance anxiety kicks in, a late rush of buyers often propels the group to even bigger gains.

I am still worried about another potential leg down, but I am beginning to think it will simply be a pullback, and possibly this year's last good buying opportunity.
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