Over the past few days I’ve noticed in the tape that value names are far outperforming growth names.  I took a deeper look at a few time frames tonight and found that my anecdotal observations were in fact correct when I looked at the data.  Take a look below for yourself.

Last 2 days.

The last week.

Since the February 5th bottom.

As you can see, value is kicking ass over the course of this rally, especially over the past few days.  An anecdotal observation, the financials and casinos have had quite a run over the past few weeks, which makes sense given this data.  As well, the “junk stocks” are flying again, we saw this data in the chart post by @VPgradient on the 13th here.

It’s getting too easy to make money on the long side here, the 14 period RSI on the $SPY is trading at 100 right now.  Have any of you ever seen a 100 reading on an index RSI?  We need a pullback here, or at least a consolidation for a few days.  I believe we are seeing a replay of the July short squeeze, which means there is probably another 4-5% left in this move.  This would line up with my ultimate target of between 1200 and 1250 on the $SPX.  Are we going there next week, I doubt it, this will continue to be a slow motion melt up.  Wait for stocks to pull back where better risk / reward entries can be taken.  But for god sake, stop buying volatility in the form of $VXX and STOP TRYING TO SHORT THIS MARKET!