Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Late Friday I wrote:
On the positive side it was nice to see stocks as a group have the ability to stay upright without a certain group of the same 10-20 stocks leading. We’ll see if this is day 1 of a rotation into laggard groups of Q1, or a warning shot. Energy stocks continue to act strange – despite high oil they don’t act well.
I was leaning to the idea that some new groups may take over the mantle of leadership at least in the near term as those “10-20 stocks” are so extended from any meaningful support on their weekly charts, that other names which have been basing for 4-8 weeks could take over. Wrong! An even better outcome today.
Instead, not only are the “10-20 stocks” winning today, but so are the laggards. Today the Chinese PMI seems to have lit a fire under the commodity and energy complex. These rallies have been ethereal as for every Chinese data point there is an European one, but for today at least it is a broad based move amongst many sectors.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
