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Equity Market Notes: Will the Third All-Time SPX High in a Row Stick?


Here's what we're watching in the Buzz & Banter as the market hits another high.

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

For the third day in a row, the S&P 500 (SPX) had made an early-morning all-time high. Today, it touched 2010.98 before ticking down just a bit.

On Tuesday and Wednesday, after hitting new highs, the SPX went south and finished about flat.

Let's see if we break that pattern.

Following yesterday's Pacific Crest-induced dip, Apple's (AAPL) back with a vengeance, trading up nearly $4 above its early morning low to flirt with $100 again.

In the past I've discussed putting on some kind of volatility trade around the iPhone 6 unveiling, but I'm going to back off -- I think the action's going to be hard to gauge so I'm just going to hold my current long stock position.

Meanwhile, I'm puzzled by the strength in BlackBerry (BBRY), which I'm long. It's allegedly been up on coming product introductions, which is a bit kooky to me, but I'll ride the wave nonetheless.

Biotech's underperforming but that's no big deal. Given the 34% rip off the April low [subscription required] it deserves a breather. The fact that it's even in the neighborhood of green is a miracle and a real sign of fortitude for the bulls.

Besides, we're seeing constructive action elsewhere -- the Russell 2000 and banks (BKX) are outperforming, and Housing (ITB) is bouncing back from yesterday's sloppy action.

TBT is having another big day -- will the so-called 'fixed income tourists' finally have their moment in the sun? If rates keep moving up, maybe -- just read the fine print on the prospectus. Leveraged ETFs tend to behave oddly as the time horizon grows beyond a day.

JW Nordstrom (JWN) approved a new buyback program for up to $1 billion worth of shares through March 1, 2016. It has $323 million to go on its existing buyback. I highly recommend reading Fil Zucchi's recent work on buybacks -- they're a key element in this bull market. Corporate cash in aggregate is a giant buy side institution [subscription required] with $600 billion+ in annual equity inflows that just buys and buys and buys.

In all, we're doing okay. The few days have felt like a logical resting point, but for now, we have more buyers than sellers. My eye is perpetually on the exits (and this has been going on for years, to be honest), but I'm not fighting it.

Twitter: @MichaelComeau

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No positions in stocks mentioned.
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