Relentless Stock Market Is So Good Even I'm Nervous

 | Jan 11, 2018 | 4:48 PM EST
  • Comment
  • Print Print
  • Print

The word that comes to mind after watching the market today is "relentless." After the brief stumble Thursday, the buyers were loaded for bears today. It was straight-up action with acceleration into the close. Breadth was a very hefty 5,300 advancers to only 1,550 decliners. New 12-month highs exceeded 1,100. There was strength across the board.

If you are looking for negatives, about the only thing you can say is that the price action is too good. The indices are extended and many stocks are as well but when momentum is this strong overbought conditions can be overcome fast. All it took was a small rest yesterday for the bulls to regain their mojo.

I have to admit that the action is so good it is making a bit nervous. This obviously is not sustainable action but there is just no way to guess how much longer it may last. I found quite a few setups today that still look quite good. Some of the speculative junk has cooled off but there is rotation taking place and new merchandise is stepping up.

My mantra recently has been "stay focused on individual positions." When they start acting poorly that will be the signal to sell them and raise cash. This market is acting like a runaway train right now and it is not going to stop easily.

Don't start doing high fives and talk smack to the bears. Just be thankful that the market gods are smiling down on us right now. Sooner or later they will extract revenge on those that take them for granted.

Have a good evening. I'll see you tomorrow.

Columnist Conversations

View Chart »  View in New Window » BA chart I'm STALKING this one for a buy trigger........
View Chart »  View in New Window »   WEEKLY
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.