The markets pulled back sharply in the last hour as news of a possible human to human bird flu strain took front stage. While sometimes news is used as the scapegoat for price action, I think this time the markets were rattled by this development. Bird Flu stocks such as NVAX and BCRX were trading higher as well. I was a little surprised to see gold pull back as it is usually a safe haven in troubling times but the dollar strengthened as the news came out. As the dollar strengthens, commodities weaken. Here is a link saying as such.
Here are a few charts that held up well today after the pullback.
ADS was highlighted here last night and the held most of their gains today.
JLL took out the descending trendline on big volume. Watch for a follow through.
XTXI cleared a choppy flag type consolidation and managed to close above all the noise.
Watch to see how tomorrow closes. It is much more important then how it opens. The markets have a funny way of absorbing overeaction to news and working it's way back to where it was originally. Think about the famous Bartiromo / Bernake comments. The market sold off and ended up right back where it started a day later. I will be watching to see if the markets follow through on the selloff or if they rebound again.
Good Luck,
DT
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