Can retail and airlines lead? Can the beaten-up Apple (AAPL) suppliers get some footing? Can the rest of the market rally if oil keeps going lower off of astonishingly high inventories?
Talk about question marks. One thing for certain, though, is this was a short squeeze day. One of the easiest shorts in this market had been retail. Think Costco (COST), which like Apple is part of the Action Alerts PLUS portfolio, with its credit problems and low same-store sales, or Nordstrom (JWN) with repeated misses, or Gap (GPS), which surprised! If we extrapolate Gap, then this group romps.
Airlines have been pathetic value traps, but their rally today seemed more than dead-cat bounce. Just need one solid piece of good news there and you could have a run.
Component parts? I don't know. Western Digital (WDC) beat, but off a very low level. Qorvo (QRVO) and Skyworks (SWKS) are just Apple iPhone 7 shortfall plays.
The one that continues to work is Nvidia (NVDA). The one I think is the cheapest because of its Internet of Things panoply of business, Action Alerts PLUS holding NXP Semiconductors (NXPI), acts terribly. But then again, to switch groups, so did WhiteWave Foods (WWAV), another Action Alerts PLUS holdings, before the bid for it by Danone.
Look, oil is in charge. The reversal was brutal. But some truly bedraggled stocks rallied, and that can't happen without something good behind it.