Fighting the Good Fight

GrubHub, a name which I have been long inside Market Chess Subscription Services, had a rough early morning on the back of a downgrade from Morgan Stanley. At one point, GRUB was not far from taking out yesterday's lows, which would have been a rather ugly giveback considering the strength of yesterday's rally.

However, as we speak GRUB is back to green. In situations like these, we want to gauge just how voracious the underlying appetite is of buyers, in terms of defending a potential new school leader like GRUB and its intriguing business model.

While it is likely too early in the session, still, to draw too many conclusions, I am encouraged by the reversal back to green. Earnings are approaching on May 1st, and I will very likely be out of my swing long by then, win or lose.

But this is the type of action off downgrades which reinforces the notion that the broad market has improved a bit more of late than bears will want to acknowledge. 

Elsewhere, cocoa (NIB ETN) continues to shine in the soft commodity space. It sure looks as though cocoa is enjoying a new bull run which is well underway.