You Know Cashish Has Been Legalized Too, Right?

Despite the surge on the major averages into the closing bell yesterday on the EU/Trump news, inside Market Chess Subscription Services I moved to my heaviest trading portfolio cash position in quite some time. 

Simply put, the broad market is attempting to stave off summer volatility and indeed a correction by continuing to play the rotation game of daily musical chairs. As an example, this morning we are seeing the small caps and retail stocks attempt to compensate for the glaring weakness in the Nasdaq off FB and PYPL earnings selloffs. 

Thus, bulls will point to rotation, which is seemingly in perpetuity, as the kryptonite for both bears and volatility, while bears will counter that the rotation attempts are not amounting to much net progress to the upside and therefore will lead to "churning," where bulls eventually become exasperated by the aimless rotations and eventually throw in the towel and sell everything. 

With Amazon earnings (and plenty more) tonight, TWTR tomorrow morning and the GDP number to boot, we may not get an immediate answer today to the bull/bear debate at the moment. 

But a cash heavy position ought not to be overlooked, if nothing else as a means to avoid unnecessary frustrations during a choppy summer period. 

As for new longs, the retail space continues to impress. On the XRT sector ETF, updated below on the daily timeframe, another push over $50.85 today should help the many individual names we are tracking attempt to break out cleanly in what has been a messy breakout tape.