Don't let the relatively flat performance of the major indices (Dow down 0.6 percent, S&P up 0.1 percent) lull you into thinking nothing happened this week.
Remember what the Smart Money trade was up until a couple weeks ago:
--Long: oil stocks, fertilizers, iron ore
--Short: financials, retailers, small caps
What a difference a few weeks make. Once again this week the above trade is unwinding:
--Small cap Russell 2000 outperforms big cap S&P 500 (up 2.5 percent vs. up 0.1 percent, respectively)
--Oil stocks again underperform
--Retailers hold up despite poor guidance
--Financials mostly sideways
--Dollar at highs for year
On top of that, techs are outperforming on hopes for a seasonal rally and positive comments from key names like Cisco. Rightly or wrongly, there has definitely been a change.
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