Relax, bro.

The short-term focus of the market never ceases to amaze. Analyzing the Bloomberg terminal early Wednesday, one would think the market was on a five-day rally that has added 1,000 points to the Dow Jones Industrial Average . There is almost a complete wiping of the mind of Tuesday's ugly session, driven by real global factors that should unnerve the bulls. At last check, Dow futures were up 160 points on Wednesday despite weak sessions in Asia.

That said, for those with short-term memories that are buying stocks Wednesday, pay attention to the action in FANG and bank stocks. FANG stocks (Facebook (FB) , Amazon (AMZN) , Netflix (NFLX) and Alphabet (GOOGL) ) continue to trend higher on waning volume (not a good sign) and bank stocks have violated key technical support points. The market is trying to tell you something, bulls. Respect it.

Names on TheStreet

Later Wednesday we will have up our 30-minute plus podcast interview with Cisco (CSCO)  Chairman Emeritus and former long-time CEO John Chambers. Always enjoy talking to John. He is incredibly connected around the world and has seen, and done, just about everything in the tech space. Two quick insights from the chat. First, Chambers made a good point when I asked him why tech stock valuations are where they are -- "everyone is becoming a tech company."

Makes sense, as agriculture companies such as Deere (DE) are making bold tech bets to help farmers improve their productivity and a Walmart (WMT) is more digitally driven nowadays than store driven. Why not pay up to be part of that transformation?

Secondly,  Chambers thinks U.S. regulations are such that tech companies no longer want to go public. I asked him if Uber should go public. His response: "Why should they?" Today, Chambers is leading VC firm (backed by his own money) JC 2. Along with his son John (who had stints at Netflix (NFLX) and Walmart's e-commerce business) and long-time communications director Shannon Pina, JC 2 is investing in early stage companies ranging from a drone maker to a food company that hawks cricket-made snacks. 

Keep an Eye on All of This

(1) Snap Inc. (SNAP) co-founder Evan Spiegel had a few choice words at the Code Conference Tuesday night about Facebook, moments before Facebook Chief Operating Officer Sheryl Sandberg hit the stage. When asked if he was upset about Facebook copying its ideas, Spiegel said: "At Snapchat it's all about building deeper relationships with the people that you're close to. "They [Facebook] are having trouble changing the DNA of their company, which is all about people competing with each other for attention." Perhaps, but the market says Action Alerts PLUS holding Facebook's model works and Snap's is a mess (along with its leadership). Facebook's stock is up 60% over the past two years. Snap's stock has crashed 58% since its ballyhooed initial public offering in March 2017.

(2) It sure seems like buying big bank stocks such as JPMorgan Chase (JPM) and Goldman Sachs (GS) on weakness would be a wise proposition. Regulators will begin meeting Wednesday to discuss rolling back parts of the Volcker Rule. According to Bloomberg, expected revisions will likely slash bank compliance costs and make it easier to take advantage of exemptions under the rule. Coupled with the recent rollback of regional bank regulations, which may open the door to a wave of M&A, bank stocks have a tailwind at their backs. Rates staying at current levels or pushing slightly higher and Italian debt auctions going reasonably well would only add to those regulatory tailwinds.

(3) The U.S. dollar is on a mini hot streak, rallying about 6% since mid-April. The appreciation should call into question any Wall Street S&P 500 Index forecast that uses dollar weakness as a reason for optimism.