Masking the Action with Eyes Wide Shut

Equities are beginning to take on a classic late-innings feel, with most momentum traders congregating around a select few popular tickers as the advance/decline line signals weakness below the surface. Granted, it is early on and, granted, this bull market has cast aside one divergence after the next.

But with respect to increasing or pressing long exposure, as opposed to trying to call some kind of top, the action the morning in the Nasdaq's premier names like AMZN FB GOOGL PCLN, even MBLY, seems to be masking the underlying softness with eyes wide shut. 

Elsewhere, gold and miners are plunging to new fresh lows, as the overarching bear market reasserts itself. A big issue there is whether silver (keying off SLV, for example) will take out its July 7th lows like GLD did. I do not see a compelling long trade there yet as a snapback rally play, though several of our Members inside Market Chess Subscription Services has been pressing shorts the whole way down and managing risk, too. In addition, I remain long DWTI from $94.66 as a way to short crude with leverage.

Overall, market leadership is now obvious but rather narrow.