Today was a “fade the bad news day,” as horrible economic news wasn’t enough to keep us down. I think it is short covering ahead of the long weekend as opposed to buy pressure before the long weekend. Also, opex fucks with everything. With the breadth monitor still officially in the sell zone, I added to my shorts via [[smn]], [[fcx]], [[bg]], and added new ones [[pcu]] and [[tex]].

Think of breadth as the blood pressure and pulse of the market. While historically we have continued to run after the first sell signal, the rally always fades. Remember, this has nothing to do with trendlines though it is certainly a nice coincidence that breadth is in the sell zone and we are approaching resistance.

I hate CVX. CVX joins the DJIA Tuesday, which to me means nothing more than index managers have to buy it. I have seen these stocks pop on the date of announcement and on the date of addition. I would fade that move.

Lastly, it is President’s Day weekend. I demand you drink a beer in honor of iBC and your favorite President . Gather your family and regale them with a story of nuclear fallout over a nice plate of gumbo. It’ll be a fun time.