Typical nuttiness of days when everything is lower. Bunch of gunners come in and start buying the highest growth stocks. This always bothers me because do the buyers of Chipotle (CMG) really have to come in up here and start buying? Do you really need to pay up here for Apple (AAPL)?
Of course, if you are following a particular playbook, and that playbook is simply "Buy the highest growth stocks imaginable because growth is slowing," then it makes a ton of sense.
I have always been a believer of NOT PAYING UP. I have always, other than in 1999, felt that if you just pay to wait, you will catch a down day and get better prices. I mean, Chipotle's been all over the place, and, need I remind you, but people thought that they missed real big when the company reported.
Still, buyers come in and show no regard for discipline. What's really incredible is that there will most likely be no news flow. It isn't like CMG or AAPL just preannounced to the upside or that they will.
Apple doesn't do those kinds of things, and Chipotle is incredibly conservative.
(The same thing can be said to a lesser extent about growth names like Starbucks (SBUX) and Whole Foods (WFM), which hole up well. However, paying up a little bit even on a down day can make sense as these stocks will be the first to bounce if things get better.)
It's just the relentless growth stock buying that we just have to take with a grain of salt each time we get a recession-based selloff.
Random musings: It looks like options expiration took things up more than we thought. I still believe the big travesty is the decline in the oil stocks off a minor decline in the commodity.