The bulls have a perfect record so far in 2018 but there was some shifting in the underlying action today. The primary change was a shift into financials, which helped to keep the indices in positive territory but small-caps lagged and the indices did not finish at the highs of the day for a change.
Early in the day it looked like the speculative action in some of the "junk" blockchain and China names was slowing but later in the day a number of new names came alive. ChinaNet Online Holdings (CNET) was the star of the show with a gain of 700%. A couple of other names popped up as well, such as China Information Technology (CNIT) and Xunlei Limited (XNET) .
That sort of frenzied speculation drives more conservative money managers crazy but it helps to produce positive sentiment. When traders are going nuts over these crazy names it tends to stir up animal spirits for the whole market.
There is reason to think that maybe sentiment is becoming too positive but it is impossible to time the market using contrary thinking. Momentum always lasts longer than you think is likely. That is the nature of the beast.
While this has been an exceptionally good trading market recently, it the sort of action that makes you wonder how long it can be sustained. I have no idea but I'm going to try to stay with it as long as I can.
Have a good evening. I'll see you tomorrow.