If the Market is on Yayo, Then We Must Look at Zayo

Headed into a three-day weekend, a hot broad market is still melting up as we speak.

At this point, our focus in on those names which may have lagged this week but are not lagging the tape as a whole. In other words, we want to identify strong overall chart (meaning over a period of months, quarters, etc.) even if they have been quiet of late.

The rationale behind this strategy is that these names may very well offer the next wave of opportunities for increased participation in the rally. One such example is ZAYO, below on the daily chart. We can see a steady-as-she-goes consolidation which is likely digesting some of the stock's meaningful rally beginning last summer. 

Although we can harp on just how overbought the indices may be, the reality is we still must be prepared in the event we see more of an anticlimactic scenario where we simply maintain most of these gains. And if bulls have more juice left in the tank, names like ZAYO ought to be watched closely next week.