RR: Big & Sexy

Immediately Monday, the Greece contagion scenario came off the table.  And immediately the markets were off to the races.  Interestingly sentiment remained negative most all week with the NAAIM index actually falling.  This is a big sign that the negative disposition of market participants (that is a staple of bull markets) is still present.

Check my latest link-fest for some great reads over at See It Market.

Inside the Market

The S&P 500 closed the week back at a major resistance zone.  It seems like the odds are this will eventually break higher, but this area is VERY important.  A breakout and hold above would have such big implication you don't really need to jump the gun with fresh positions here and now.  Particularly with earnings season ramping up.

Looking at the fear gauge, it's gone from fear to nearly fearless in just over a week.  Incredible.

The theme of the week I've tried to preach on twitter is 'Buy 'em big and buy 'em sexy'.  Here's why:

Josh Brown notes a shift if fund flows to actively managed funds.  Aggression levels are picking up.

Growth names relative to value are performing exceptionally well and breaking multi-month ranges to new highs.

The largest market cap names are clearly leading the S&P 500 higher.  Friday's action underneath the surface was ugly.

Group Action & Other Markets

Is TLT forming some sort of a bottom?

What's makes that chart really interesting is how dividend names have lagged the market notably during this rip.  That's about as sharp as the moves get.

Financials are broadening out.  It appears the most recent decline was a false break of the trendline dating back to 2009, which suggests this group could get violent on the upside.

Are Citi and Bank of America becoming must own stocks for the rest of the year and even into 2016?

The US dollar broke out of it's multi-month range.

The Tourism Index is testing a key resistance.  Will the fresh dollar strength be enough of a boost?

Of course no analysis of the tourism group would be complete without oil.  Oil is trying to break lower towards measured move targets 5% lower, but bulls have brought some fight at the July lows.

The DAX has broken it's falling channel.  We can expect the 12000 level to be an important resistance level.

Trade 'em well!