No Joke: This Market Is Exceptional for Stock-Picking

 | Jan 12, 2018 | 6:06 PM EST
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The S&P 500 is now 8 and 1 for 2018 and has a gain of more than 4%. While that performance is fantastic, what is really impressive about the market is how relentless it has been to the upside. There has hardly been a dip this year and there are new record highs on a daily basis.

The action Friday was more of the same -- a strong open, good breadth and sizable point gains. It is has been so steady that the jokes about how the market will never go down again are already old and stale.

Straight-up markets are not always that great from a trading perspective but this one has been exceptional for stock-picking. The strength isn't driven by just a small group of big-cap FAANG names, it is broad-based and there are interesting chart patterns on a daily basis. Even though the indices are very overbought, I still see plenty of individual stocks that look quite attractive. The biotechnology sector looks particularly robust as far as setups.

The market is going to stumble sooner or later but don't rush to declare the end of the world at the first sign of trouble. Some downside volatility would actually be positive, but you can bet at the first hint of a downturn there will be bears shouting "told you so."

Predicting a market top is the easiest thing in the world to do. Timing is what it's all about, though, and right now the thing that works best is the old cliché "the tend is your friend."

I'll be putting together my watch lists and trading notes over the weekend and be ready to go on Tuesday morning.

Enjoy the long weekend and do something fun.

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