The market averages, in the face of 100 years of largely being a mean reverting entity, refuse to do so in 2024. On Monday I posted the IWM chart and talked about the stored energy and what I believe will end up being a break higher and then an historic failure. To reiterate, it is bullish on the breakout and continues to be bullish until it stops going up and comes back inside the breakout level on the weekly chart. The reversal tends to be even more powerful and relentless than the breakout. So we do not anticipate the reversal, but rather be aware that when this last gasp is over a much larger than average mean revision will be coming — one that overshoots on the downside. 

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In the interim we are coming into earnings season. It looks technically like the semiconductor and AI stocks are well positioned to add to gains especially if they can consolidate in front of these earnings reports. So it is that AMD, NVDA, AMZN, MSFT etc are still buys on dips. A couple of out of favour stocks that I tried to get long on Tuesday are ROKU and SBUX. Both had good days Tuesday. I would add WYNN hotels to that list for Wednesday. All three of those look sold out and should bounce higher. Still very long of TLT, and like longs here in oil and oil stocks as well. 

Thanks,

Joe