I Don't Know Why You Go to Extremes

Simply put, this type of market features benign indices and a plethora of enticing long setups beneath of the surface. While it remains to be seen if bulls can continue to pounce on that apparent meatball down the middle of home plate, thus far bears have shown a unique inability to win even minor skirmishes in their favor, let alone a battle of the war. 

With the sharp upside reversals in the energy patch today, in addition to names which had appeared ripe for breakdowns in NKE UA, it is awfully tough to embrace the bear case for now. While I see many pointing to the VIX hanging in there today, that may also be a contrarian signal favoring equity bulls, if too many traders are hedged at the moment. 

Instead of going to extremes, I am simply going with the flow of the market, locking in winners in extended names and looking to rotate capital down stocks setting up nicely behind the leaders. As always, religiously keeping losses small is an integral part of my strategy. 

Retail also represents a promising signs for bulls, with the sector seemingly moving in unison higher in light of the Macy's and JCP rallies. 

Dick's Sporting Goods, for example, has benefited greatly from the Sports Authority bankruptcy as the chart has been very impressive of late. I am actively looking for a fresh long entry into next week there. There are a few other names we have been stalking for Members in retail, such as FRAN. I will highlight that group and a few other key areas for Members tonight in the full recap.