Inured To Bad News…Stocks Waft Higher

May 22, 2019

Stocks are in wafting mode, indifferent to tariff wars, slumping retail sales and impeachment talk. The broad averages have been racking up impressive gains even when buying interest is weak to nil. It certainly felt that way on Tuesday, when the Dow Industrials rose nearly 200 points on the opening bar, then hovered aloft for the rest of the day. For every tepid buyer it would seem that there is an even more tepid seller.  The only stock that has attracted bears with some gumption is TSLA, which has been fighting for its life lately against a steady stream of ugly headlines. Short sellers had better make the most of enticing odds in the stock, since they’re not likely to catch a favorable breeze elsewhere.

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The chart shows VXX, which tracks short-term volatility in the S&Ps, headed at least 6% lower over the next day or two. If so, the index, currently trading for around 2864, is bound for 2900. Play the FAANGs, over-stoked as they are, and you can’t miss.

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