The Best Nation in the World is Rotation

We have a notable rotation taking place within equities this morning, after fireworks in China last night to the downside. In a similar vein, the rotation is happening on the short side, of bears "rotate up" from beaten-down losers towards holdouts winners, instead. 

As evidence, consider the pounded that the FANG Gang (and TSLA) is taking at the moment (the fact that virtually everyone reading this knows what the acronym stands for at this point may be a sign in and of itself of how long in the tooth that trade was), while abysmal stocks like CHK FEYE GPRO JCP JWN KMI M all flash green.

To my eye, this type of price action indicates that bears are giving the losers a bit of a reprieve while they target prey with more meat left on the bone. 

In addition, the firearms plays like RGR SWHC are turning in brilliant performances. We have been long SWHC inside Market Chess Subscription Services, and noted on this website that those charts have been very strong and are, indeed, capable of trading in their own world, oblivious to the market. If we do see stricter firearms laws, I suspect it would then be a good spot to lock in some gains. 

At the moment, we are targeting other holdout names for Members which could easily succumb to market selling pressures, in lieu of picking at the bottom-dwellers which have little meat left on the bone right now.