T3’s Take 3: 7 Wins in a Row for Mr. Russell – T3 Live
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T3’s Take 3: 7 Wins in a Row for Mr. Russell

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1) King Russell Powers Up

The broader equity markets did a whole lot of nothing today, trading in a tiny intraday range that had observers like me falling asleep.

However, while the SPX remains stuck in its trading range, the Russell 2000 continues to show realtive strength.

The SPX fell -0.2% today, but the Russell rose 0.3% to post its 7th  gain in a row.

The Russell had been showing relative weakness since the March 1 market peak.

The bears had been pointing to this as a sign of impending doom, but the Russell may be on the verge of resuming its furious uptrend.

2) Below the Surface

The Russell's outperformance todya was a major positive.

However, the action below the surface was mixed.

On the plus side, biotechnology overcame early losses to flash green, and crude oil popped its head above $50, which drove a nice rally in energy service names.

However, the banks gave back some of yesterday's gains, and the US dollar is still stalling as traders lose faith in the Fed's ability to raise rates.

3) So What's Next?

The Russell 2000 seems like it's still key to this market. As long as it holds up, odds are the bull stays in charge.

But with the possibility of a more dovish Fed, I'm wondering if we're going to see a rotation out of the so-called “Trump Trade” (long banks, long small caps), with strength coming in utilities, gold, and US Treasuries.

Either way, I just want to see some volatility — this grind is almost as boring as last year's big summer snooze.

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