Yesterday the XLK, XHB, and the QQQ dominated the action as far as performance, they were the top 3, GDX, XBI, XOP were the bottom 3. We had some very good action in the XHB with KBH leading the way. The homebuilders is a sector to watch due to the fact that the stocks have been on a tear and they are all for the most part heavily shorted. Take HOV for example, the stock has more than doubled and the amount of the shares short as double as well in the last 6 months. If the stock continues to push up, the shorts more than likely will have no choice to cover.
AAPL will dominate the headlines today, I’m not so sure it will dominate the action in the market, the SP500 is up 6 days in a row, and the Nasdaq is up 5 days in a row, over the last 3 years this has posed as a negative for them over the next 1-5 days, see my previous post.