Dog Days of Wall Street for Non-Celebrities

Down in the Philadelphia area there is a sarcastic colloquialism of the streets, "must be nice," often said to someone enjoying a particularly obvious run of good luck or just peace and prosperity in life, in general. 

Thus, when we see the likes of CRM up over 25% as I write this while FB and NFLX are up 5% and 7%, respectively, the rest of the market collectively says, "must be nice," to them, especially with small caps red and many other parts of the market barely having woken up for the opening bell today, such as banks in the XLF and biotechs in the XBI ETFs. 

Headed into the virtual Jackson Hole Fed monetary symposium tomorrow, there is plenty of buzz surrounding Fed Chair Powell's likely discussion of new inflation markers by The Fed.

I am inclined to think the market has been aware of this development for a while now, which would help to explain the Dollar weakness, surges in precious metals, and never-ending rally in large cap tech this summer. A "sell the news" reaction seems entirely reasonable, with me of course having to give the obligatory qualifier that this market has been anything but reasonable at times. 

Having that said, a Dollar squeeze and Nasdaq reversal lower is still something I view as a better risk/reward into September than the notion that runaway inflation is upon us with nominal equity gains somehow getting a free pass through all of this. As much as I want to believe that stocks will be a sacred cow, immune to the cross-currents and headwinds the economy and various businesses face after Labor Day, I suspect the hangover to the current melt-up will be intense. 

On that note, how about those firearms plays? With the latest unrest in Wisconsin for all the world to see, RGR is holding $70 nicely and bouncing hard while SWBI is recovering from yesterday's plunge.