Bear Beating

Another bear beating rally today, so far with light volumes, strong breadth, rising TNX rates, and small caps outperforming.

With respect to the bands (volatility):
IWM up almost 2, GS about 1.5, DIA and SPY around 1.2, and USO off about 0.6

Jeff Saut (referenced earlier today) discusses cycles and bear rallies in his column today.

Absolutely getting crushed today include POT, CF and some in the Agri space.

"Stuff" getting crushed again, with the dollar up, and the momentum trade absolutely in beatdown mode on the commodity space.

A good example of the action is XLY (Consumer discretionary) up over 4 percent on 14% of the average 65 day volume so far, SHLD up almost 5% on 14% relative volume (see prior), and the HGX up almost 4% on 15% volume.

At least for now, the bulls are 'rag-dolling' the bears, and where performance anxiety meets risk is anybody's guess.

Good trading and great risk management to all.

Educational use only. Never intended as investment advice.