A Fine Backdrop

It is always intriguing to see commodity-related stocks outperform a the underlying commodity, such as we are seeing with some of the exploration firms today like CHK RRC SWN. Typically, when the stocks in question outperform the underlying commodity it is a bullish sign of risk-on in the complex. A classic example would be seeing the gold miners outperform gold itself, with the latter often serving as a flight to safety (though clearly not so much in recent years). Still, when the commodity-related stocks outperform, I take notice. 

Hence, with CHK's impressive daily chart, below, basing for months on end and threatening to make a push to breach $5 resistance, it is all the more noteworthy since both crude and natural gas are red and pausing this morning. 

Elsewhere, the TWLO for SEND buyout is a good reminder that we still have a fine backdrop of a bull market until proven otherwise. And M&A into year-end is still very much on the table for high growth software plays.