After a quick early-morning selloff on the heels today’s jobless claims data(which happened to beat expectations), markets have reversed and are trading near their highs of the session. The selloff on good data shows that expectations have been raised on the jobs front, but also that dips continue to be bought, no matter how shallow they may be. Currently, the S&P 500 is trading at a new all-time high of 1635, up 0.2% on the session. Technology is today’s relative strength winner, up 0.5% for the session. Despite equity strength, bonds and volatility products continue to hold a bid, as bonds are about 0.6% higher on the day with the VIX up 1%. This trend has persisted for most of the week, and should be monitored closely going forward.
CHART OF THE DAY
BlackBerry (BBRY) – The technology company has been strong for some time, adding about 35% year-to-date and over 100% since bottoming last September. Despite its strength, sentiment remains very skeptical. In fact, short interest toward BBRY is currently at an all-time high, representing nearly 34% of the equity’s float. Should BBRY continue in its uptrend, this opens the possibility for strong short-covering rallies going forward.
I like a long entry here with a stop on a close below 14.50. I would initially target a move to 18, with 25 as a stretch target.
WHAT I’M EXPECTING
Until some sort of news shocks the market, I’d look for more upside. Equities keep making new highs, but skeptics remain. So long as people are doubting this recent rally, there’s more pain in store for bears.