Welcome to the Tag Team Market

After a weekend chock full of gloom and doom about Credit Suisse and Europe at-large, the market is of course gapping up to kick off the new week, month, and fourth quarter of trading. As rates back off, the market seems to care about that the most. 

As we noted with Members over the weekend, the first autumn midterm election year bearish seasonal window is shutting this week. While not written in stone, it does compel us to be far more selective with bearish bets on the near-term, especially if the market stops going down in the face of scary headlines (or rumors). 

Beyond that, despite ARKK and TSLA clearly lagging off the open we have energy leading to the upside. Oil is surging off the OPEC news, and other energy segments like uranium, coal, solars, tankers should be watched for upside. 

With this in mind, understand that may very well be in BOTH the early/middle stages of a major bear market in equities BUT the early stage of a new commodity bull market, too. 

This may sound like a contradiction, but I view any deflationary scare as being cyclical and ultimately temporary which the inflation theme for commodities is secular and only just now getting started. 

Thus, we may be in for a "tag team" market going forward with stretches of most equities getting pounded lower followed by spurts of commodities gearing up for new legs higher. 

Hence, coals like BTU CEIX, uranium miners like CCJ, are all in focus on the long side if this move sticks beyond the usual suspects in the oil sector.