Up and Up

Well, here I am, Mr. Bear. I probed a bit on the short side (via TWM) on Tuesday, and got stopped out this morning.

So I give up, and I bought a small position in UWM (ultra long Russell) because a trend is a trend is a trend, albeit one that I think is unsustainable.

But the magic pixie dust that got spread around yesterday is still working, and I think it's a safe bet that this rally will once again probe the recent highs and even push through a bit:





So the Fed-driven reflation trade is alive and well, but let me draw attention to the exceptions to this little mini-bubble:

Utilities are underperforming:



Most interesting for me is what happened to the EUR/USD cross around 10 am EST:

It got creamed


Now, that flies in the face of the reflation trade...a stronger dollar does not make the Fed happy (but it makes me happy)

While we're on the subject, how's the Fed support of the long end of the yield curve? In a word, not very well!



So while the major indexes' rally is still intact, I believe there are things going on under the surface that indicate to me that the weaker hands are running the show now, and that a "real" test of the lows has yet to happen.