Resisting the Drama

I had a few hedges on headed into today and rather quickly took them off this morning as the opening gap higher built on itself amid a fairly calm and orderly push higher. While we may very well have more backing and filling to do during this consolidation phase, it is likely correct to avoid become too dramatic based on headiness and fears. Simply put, the price action on the whole has not come close to matching the bear case for an imminent top. 

True, things can always deteriorate. And some major earnings and macro events await us, be it AAPL tonight, AMZN later this week or the FOMC and GDP data. 

But with relative outperfomers emerging after sustained periods of underperformance like Square (SQ), not to mention the orderly manner in which the likes of a name like PETS, updated below, is coiling, I will err on the side of the overall trend until we see bears use the news flow to their advantage for more than a day or two.