You Cannot Completely Avoid the Drama

The Comey testimony today was largely a non-event for stocks, as the larger issue for traders focused on price action in lieu of politics was the rotation back into small caps and banks, like Citi, for the most part. 

In addition, the XME (ETF for materials miners) staged an impressive rally, with beaten-down winners from 2016 like CLF and TECK turning in solid sessions. However, they are still far from quality charts for swings and must improve. 

Actually, the aluminum plays are a bit better set-up here and worthy of some attention, which we will flesh out for Members after the bell in my full recap. 

Overall, bulls have the ball again in terms of trying to break the small caps up and out of a massive range since late-2016. Should the IWM ETF falter at $141, again, we should expect more choppy action into the FOMC next week. 

We cannot completely avoid the political drama and circus these days. But we can blunt its distraction by focusing intently on the price action and rotations.