It has been another intruding session where major equity indices belie what is really going on.

The session began with two groups sitting out of the rally: communication and technology, signally continued rotation into what I am calling the normalcy trade. Then in the last hour, the tenure of the session took another turn with these sectors edging higher but classic defense sectors, utilities, real estate, and consumer staples dipping.

In both scenarios, the message is clear, investors are a lot more optimistic about the economy which means a broader more inclusive rally.

Single Family Housing Starts

Housing starts came in better than expected, but the news was even better for single family starts which climbed 6.4% month-to-month and 29.4% from a year ago.

So, the market is gyrating but there are huge winners. Investors are grappling with where to buy next.

It’s a difficult situation because it means chasing or buying something that hasn’t moved yet under a variety of investment themes and scenarios. In other words its not as easy as it looks….rarely is.