Relax and Enjoy the Game

If nothing else, the BREXIT and President Trump initial selloffs overnight in the futures markets back in 2016 should have been a lesson heeded that markets which are in established uptrends rarely "crash from the top." In other words, the knee-jerk reaction for many during those futures selloffs in June 2016 for BREXIT and then November 2016 on Election Night was to say that this was another "Lehman Moment."

But the failure of Lehman Brothers occurred during an established bear market. The summer 2011 European debt crises selloff features a very sharp, multi-day selloff. But that occurred in the midst of a market which had already started back off its highs and saw narrowing participation below the surface well before the event. 

Thus, with the current market basically featuring all the senior indices at all-time highs with bulls threatening fresh rotations seemingly on a daily basis, including the software space which has been asleep for months now, today's move to green on the indices should not come as too much of a surprise. Sure, the current market may very well be in a consolidation phase. 

And, sure, we may be headed towards another prolonged period of geopolitical tensions with Iran.

However, from the market's standpoint we have not yet aligned with the bear case for a major top. Beyond that, the inability of bears to keep futures down for more than a few hours ought to raise a few eyebrows that the "pain trade" may still be higher in this market. 

As a result, while I am spacing out new longs on my part, I am still very much opportunistic for a market which may have some unfinished business in terms of punishing shorts. 

Planet Fitness, the low cost gym franchise, features a heavily-shorted float and a much-improved chart. We are, clearly, in the midst of New Year's Resolution season where gyms should have plenty of new signup. And PLNT stands to benefit greatly due to its low cost. 

On the updated daily chart, below, we can see the stock tightly basing above all daily chart moving averages with the potential for a sharp squeeze imminently.