The Closing Look

Stocks opened lower but closed mixed on Monday as the beaten down areas of the market continue to march higher. Oil prices surged over 5% on Monday and have vaulted over 42% since the Feb 11th, low! That is a massive rally over a short period of time. All the areas that have not been working for years are trying to bottom. It began with Gold ($GLD) a few months ago, now other areas are catching a strong bid. These areas include: emerging markets ($EEM), oil ($XLE $OIH), steel ($SLX), transports ($IYT), materials ($XLB), junk bonds ($JNK), just to name a few.

Gary’s Thoughts: Did anyone see (FANG) today? Hmmm! We know what has been working for the past few days but as we wrote over the weekend, was not thrilled with big tech coming into the week.