There Was A Change In The Markets This Week

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

--Short: dollar

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.

Questions? Comments?