This has been a pedestrian session with major indices edging higher without much fanfare.  But, there is something amazing going on, and it gets to the heart of the criticism of the market rally of last two years and a big question over a potential future move higher.

What happens when the high-flying growth names get hit?

Communication Services getting hit as Facebook (FB), Google/Alphabet (GOOG) continue to slide (they are almost 40% of the entire sector).

Information Technology is down with Apple (AAPL), but buyers are piling into IBM and Intel (INTC). 

Consumer Discretionary is under significant pressure from Amazon (AMZN), yet brick and mortar retail and restaurant names are trading higher. 

• Ross Stores (ROST)
• Dollar General (DG)
• Dollar Tree (DLTR)
• Ulta Beauty (ULTA)
• McDonalds (MCD)

I also like the action in Financials, which have been one of the best performing sectors in the past week. Today, Berkshire Hathaway (BRK.B) is leading the way, big banks are generally higher as well.  Is the group living up to the hype and can it provide board market leadership?

I’m not 100% sold on the Financials (we are long Berkshire on the Hotline Service), but I love the action in retailers, and after some early bumps in the road, restaurant stocks act and look much more appetizing.

Overall, it’s a good session ahead of the election even with the continued carnage in those names that used to be Atlas like.  We feel better about the lack of wild gyrations and the fact money isn’t simply fleeing to the sidelines.