Hide-and-Go-Seek a Gap-Fill

Despite crude oil giving up its mornings gains for a complete gap-fill, and then some, on the USO ETF, equities have not followed suit. Even with troubled banks like CS DB gapping down, stocks are holding firm after the first hour of trading. 

I suspect the fade-the-open after a long weekend was a bit too obvious to come to fruition. However, the upside action is also a bit choppy and not necessarily a full-blown squeeze. Precious miners are consolidating recent gains, but are not completely falling apart the way gold bears were expecting given the sell-off in gold futures over the last few nights. Many gold miners report earnings this week, so that should be a good tell for the near-term of that group. 

I have little interest in stepping in front of this rally at the moment, as I suspect we may see some more shorts kept honest, especially if the IWM ETF, below intraday, takes out $98 above.

For now, equity bulls are shrugging off the weakness in crude, CS and DB.