Nasdaq Bounces

Dow: +54.37…
Nasdaq: +57.23… S&P: +16.19…

The Dow  notched a fourth consecutive record close Tuesday, even as investors pulled back from some of the most popular post-election trades.

Most important was the action in the Nasdaq today as it popped about 1.4%.  A positive continuation in Nasdaq would be a great help to an already bullish tape. Right now, its the only laggard.

In recent days, investors have sold bonds and their stock-market proxies, dividend-paying shares like utilities, while buying up stocks of banks and infrastructure companies.

Today that “reflation” trade slowed down a bit, as some of those beaten down sectors like staples, utilities and gold related items caught a bounce.  So you could chalk that rebound action up to a very oversold bounce.

Long-term government bonds extended a post-election selloff on today. The yield on the 10-year U.S. Treasury note rose to 2.240% from 2.224% on Monday and posted its largest six-day yield gain since December 2010.

Lets keep an eye on this one tomorrow. Looks good, and may be ready for some breakout action.  See you in the morning.




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