Racing Towards the Fourth

An early small and mega cap Dow-led upside reversal is giving bulls reason to believe that the market is hell-bent on levitating into the Fourth of July holiday coming up this weekend. Due to Independence Day falling on a Saturday this year, markets will be closed on Friday in observance of the holiday. 

Although the Nasdaq opened red, with many high-flying growth stocks getting sold, that group is mostly back in the green, such as TWTR, or early red, such as FB. Those two names have been particularly under the gun as prominent firms have been pulling advertising from those platforms in droves. 

Overall, the early squeeze was a ferocious one but I would not be surprised to see some more violent intraday swings especially before we get closer to the Fourth. 

Another group which intrigues me is the soft commodity space. Most softs have been pummeled for years on end. However, with coffee (JO ETN) gapping higher on massive buy volume this morning, alongside corn and wheat strength, one could envision a relief rally underway for a variety of reasons.