Photo: Wikimedia Commons
From Dan Greenhaus at BTIG, a little perspective on just how amazing the rally has been since last Friday: Between Monday and today, the S&P 500 is up a whopping 4.3% which, if you can believe it, makes this two day rally better than all but 1% of two day rallies dating back to 1990. At the same time, the VIX underwent one of its largest two day declines, if not the largest. Interestingly though, the rally was led by the Telecom sector. We imagine this will be credited to enthusiasm about the (relative) positive outcome for dividend taxes however the Utilities sector, another high payer, was the day’s worst performer, up “only” 1.8%. Cyclicals outperformed on the back of gains in steel names (X +9%) and industrials (ETN, CAT, IR). You might have missed it but the Russell 2000 closed at an all time high of 873.42, up 2.83% today but the EEM, up five days in a row, has a relative strength index (RSI) up around “questionable” levels.
Just something to keep in mind. Markets are lower today, but it’s not dramatic, and barely does anything to give up what we’ve seen so far this week.