As I watched several positions in our model portfolio get hammered, despite what I thought was great news, and other companies, like Exxon Mobil, post amazing earnings results, only to enjoy a 60- second rally, there was one name that stood out more than any other, and it drove me crazy!

El Pollo Loco (LOCO) could already make claim to IPO of the Year, but its success is so absurd, some are saying the rally in its share price is the signal for a market top. At some point, we’ll discover hidden in its logo is a “666” engraving, too.

Don’t get me wrong, I think the stock should be higher than its IPO price and in fact, we made good money recommending on our Swing trading service. But, what the heck is going on when companies posting record financial numbers are fried, but the seller of fried chicken gets a free pass?

I don’t think this chicken joint and its unrelenting stock rally are the sign of the apocalypse, but along with Go Pro (GPRO), there are a few places hot money could have their way (hard to find shares to short) with the rest of the world falling apart. For the record, the market did peak the day before El Pollo Loco came public. So, is it a coincidence or not? I pick the latter, but there is a message of desperation for hot money which has fewer and fewer places to go, control, and be comfortable.

Economy Still Limping Along

The nightmare that is our fiscal and monetary policies were on full display Friday in the so-called jobs report.

• The Fed makes monetary policy
• The White House determines fiscal policy

Since the year 2009, the labor force has loss 11,097,000 people from the labor force. This is one of the topics Janet Yellen is right about, there is definitely a “slack” in the labor market. The problem is that the Fed and the White House policies made bankers rich and compelled Main Street to stay on the couch. Though there is slack in the job market, skill work ethic, and competence might be a different story.

There is not much economic data coming out this week compared to last, so focus could come back to how the market reacts with fewer inputs.

Today’s Session

Equity futures pointed higher, but there is zero conviction and nothing on the news front to serve as a catalyst. It’s a good time to sit back and see how things play out. In many ways, I would like to see the market tested and weaker hands toss in the towel. The market isn’t oversold by any traditional metric, but the rally is long in the tooth and due for a pullback. On that note, these occasional pullbacks have been amazing entry points and I think that would be the case yet again.

So far, we have positive news for the market. According to the Gallup Consumer Spending Measure, during the month of July, the daily average spending of US consumers increased to $94 from $91 in June. Consumer spending is rising to reach pre-recession levels, which translates to confidence in personal finances and the economy. Also, a few notable companies posted earnings beats for the previous fiscal quarter: