This is Not the Golden Age of Flying

While Netflix's earnings surge understandably steals the show today, adding fuel to the Nasdaq, we have a glaring sell-the-news reaction to the quietly hot airline space taking place in United, after its own earnings last evening. 

On the updated UAL daily chart, below, we can see the sharp green-to-red move, currently sporting a sizable red daily candle after a steep prior uptrend, albeit with a few hours left to go in today's session before the candle is complete. 

Still, it has been a nonstop one-way trip higher for airlines (See Also: JETS ETF) since early last-autumn. Being on the lookout for a key reversal day seems logical, even in an illogical market.

Thus, today's positive earnings for UAL being sold smacks of a key reversal day not just for United but, given the pin action in the peer group, for airlines at-large. 

Elsewhere, you will note rates firming up on the long end of the curve after a recent dip. As such, it is no coincidence that rate-sensitive parts of the market like REITs in the IYR ETF and small caps in IWM are red after their recent bounces. 

Overall, today seems like more of the same: Speculative fervor at-all-costs in the mega caps/Nasdaq at the expense of many other parts of the market. 

Finally, the Bank of Japan has a meeting tomorrow evening. It is tough to have faith that they will have the courage to execute another rate hike, but those are the rumblings as of now. Last summer's rate hike in Japan resulted in a super spike in the VIX, for example.