Tough to get too excited here unless the FXE reverses. That's because the FXE has been the only real tell all along and only if you believe we have at last decoupled from Europe can you get excited and come in on top of the 800-point Dow rally at this point.
The good news is that it does appear we have broken a couple of negative patterns. First, we didn't sell off on the last day of the month. Secondly we didn't sell off on the second day of a new month. Both had become familiar traits of a very difficult market.
Plus companies continue to get rewarded for good numbers. Take a look at PVH (PVH), which boosted guidance sharply last night. Up gigantically. Or Ulta Salon (ULTA), which also delivered a nice number.
Further, we have some high-growth stocks following the high-growth leadership of Google (GOOG) and Apple (AAPL), notably Chipotle (CMG) and, alas, Lululemon (LULU), which, upon further review, is now being given the benefit of the doubt about all of that inventory, the same way as Under Armour (UA), which is also rallying.
Other good signs: the motors are getting credit for America today, when they were dinged yesterday about possible declines in Europe.
Finally, there are the banks. They are having a kneejerk good rally. I say terrific. I outlined a plan to buy puts in the group today. It should be put into action here as a hedge to any regular portfolio out there.
