When dealing with markets we show up with our rational minds and our healthy egos.  We have got our chops down pat and have the confidence to know that we are something better than the momo day trader hack down the street.  We are learned, after all!  We have laid out our well planned orientation and positioned accordingly.  For many, it meant taking bear positioning.  Then egos were fed when NIRP/ZIRP and Brexit confirmed the dire state of the global macro.

But one by one certain market components start going against the plan.  At some point only the Dow Transports remain in a bearish posture.  But it’s the Transports!  How critically important as a bearish divergence (say some crusty old market experts, anyway).  I’ll stick with that and I will be proven as a true contrarian when the whole market weakens with the Tranny (‘pretty please?’, goes the rejoinder in nightly prayers)!

Well?  The Tranny just made a move to join the party.  While technically not yet bullish, it’s on its way and everything else is firmly bullish.  I don’t know whether this is a throw over and suck in or an extended up ramp (patterns observed in US and global markets could target much higher levels), but I do know that shorts are really feeling the pressure right now.  When the short covering begins in earnest this could get hysterical.

Then maybe the next great trade goes the other way.