Slippery When Wet Markets

It is only fitting in dead of winter that have markets seemingly skidding on black ice, not easily seen when we open green like this morning but which becomes more apparent once bulls attempt to venture to new highs. 

Specifically, the small cap stocks in the Russell 2000 Index and crude oil are two notable weak spots today, likely not only keeping a lid on upside broad market momentum but also seeing quite a few names skid along into the early-afternoon portion of the session here.

Notable weakness in the likes of CHK XOM, and the XLE overall, continues to weight down the energy sector as crude itself gets whacked today. We had been looking at some of the pipeline plays in the space for possible longs this week, for example, but the crude weakness is simply too much to fool around with energy stocks at the moment. 

That said, we know turning too bearish too soon has been a blunder for a good while now. Thus, we are simply slowing down on the long side in lieu of going full throttle with shorts, pending the afternoon action. 

The good news is that we are seeing some fresh opportunities related to Treasuries finally enjoying a bounce back over the $120 level on TLT. I will run Members through some update ideas related to this move in my usual Midday Video now.