What is Working?

Before I get into what’s working in the markets…

You must watch Tina Fey crush this 6 minute rant:

OK…

If you own the wrong stocks, this is one of the ugliest bear markets in history. Retail stocks continue to get hammered. Energy stocks are dreadful.

Those dumb baby boomers may be nervous and pissed, but the avocado toast eating, wool shoe wearing millennials are happy as clams.

So much is working if you are looking in the right places.

As shaky a week as it has been with spiking volatility, the technology sector closed at a 16 year high relative to the S&P.

Chinese consumer internet/media/gaming stocks continue to crush. Tencent and Alibaba are at all-time highs. That is nothing new.

What few are watching is the continued boom in Mexico:

Brazil has already recovered from the massive one day 17 percent crash (7 sigma move down)…that happened just a few months ago. That is crazy bullish.

JC shares another chart here showing Latin America breaking out relative to the S&P:

Oh and Bitcoin closed the week north of $4,000.

Big US financials have teased at a bigger run, but keep falling back along with rates that keep dropping. No big deal in the scheme of all the money still flowing into stocks.

It’s as if the markets knew Trump would implode the day after the election and that Bannon would be gone.

I guess global markets sell the news now that Bannon is out and Trump has no support, but it looks like that selloff would have tons of buyers.

Have a great weekend.