FYI: While you were on Spring Break, the risk markets continued their upward ways helped by Janet Yellen’s dovish speech noting slow global growth and continued global risks. As a result, the U.S. Dollar did its best Los Angeles Lakers impression while the yield curve steepened and many equity groups moved to new 2016 highs. While equity breadth measures confirmed the markets strength, not all stocks joined the move. Healthcare, Financials and European equities continue to lag. Energy is still a head scratcher as OPEC meetings continue to sway commodity prices. The recent strong move will have pulled trend followers into the market on the long side at the same time that many hedge funds and active players are just finishing covering their shorts. With so many active players under-invested or neutrally positioned, the pain trade will be to the upside going into the April earnings season. While stocks are up into the reports, expectations are low with plenty of pre-announcements on the table already so expect an increase in volatility once the company reports hit the tape. Also, April is typically one of the best months of the year to be long and the market usually wins following a big
Regards,
Ted
http://dailyalts.com/nothing-to-see-just-another-8-percent-bounce/
