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Jesse Felder
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Jesse Felder began his career in investment management at Bear, Stearns & Co. and later co-founded what is today a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. In 2000, he founded Felder & Company with a clear vision of creating an ‘extended family... More
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  • Tale of the Tape: Small Caps v Financials 0 comments
    Mar 5, 2010 5:16 PM | about stocks: IWM, XLF, VXX, SDS
    Stocks ripped higher today (through the 1121 level I've been watching) on the better-than-expected jobs report. Small caps led the charge pulling to a new 1-year high:

     


     

    Financials, in contrast, are still below their highs made over the past few months:

     


     

    In fact, the XLF is now running right into the downtrend line shown above. Financials have led the market for the past few years and they have been diverging from the new highs made in the major indexes since the beginning of the year.

     

    In addition, the VIX is retesting its January lows signaling complacency reigns over fear once again:

     


     

    Also notice that the last time RSI (top of the chart) for the VIX fell this low was late October of last year just before stocks corrected roughly 7%.

     

    Bottom line is I wouldn't be surprised to see at least a similar pullback begin relatively soon. 

    Disclosure: long SDS, VXX
    Themes: stocks, trading Stocks: IWM, XLF, VXX, SDS
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