The defense sector has had quite a run over the past 18 months. As people start to anticipate a war scenario, we're seeing a little froth in these stocks.
We think the rally in Nasdaq over the past two weeks is really a relief rally. The relief is they don't think the Fed has to go any further.
Once we get past the CPI, we'll be right into Fed watch. Just because the numbers report a slower economy doesn't' mean that we're looking at anything more than the natural seasonal response.