I don't know how many times we have seen this pattern recently, but it probably is a reflex, at this point. The indices opens a bit soft and the buyers start nibbling, quickly push the indices to the highs of the day. The Dow Jones Industrial Average is in positive territory, and hitting new all-time highs for the 12th straight day.
While the big-caps continue their streak of gains, it is the small-caps that are outperforming today. Breadth is running 3,600 gainers to 2,650 decliners, but new 12-month highs are down to around 270. It isn't will buying, but the underlying support just doesn't seem to fade.
Interestingly, the market is still reacting very favorably to the comments from President Trump. Despite all the political critics, the market is embracing economic optimism and is not questioning the ability of the new administration to execute its plan. The bears have been convinced that the market would grow skeptical of the promises, but there are no signs of it yet.
Action in individual stocks is muted, but I've added a few things this morning. My Stock of the Week is a gold and silver miner, Silver Standard Resources (SSRI) , which posted a solid report last week and is testing key resistance at $12.
Advanced Micro (AMD) has been on my radar for a long time -- and is breaking out to new highs today on news of great results on its new chip. Teekay LNG Partners (TGP) is a shipper of liquid natural gas that has been building a long base and has made several attempts at breakout moves.
Entry points continue to be very challenging, as stocks become more extended, but the only basis for shorting this sort of price action is hope.