The Nasdaq continues to move in V-like fashion to all-time highs but momentum in the overall market has slowed. It looks like just some healthy profit-taking in places as the market becomes overbought.
There are some exceptionally strong pockets of strength, primarily in chips and technology names, but it is clear that there are still quite a few bulls looking for entry points in new merchandise.
What is most interesting about the market mood right now is that all the recent worries seem to have totally disappeared. There is almost no talk about tariffs or interest rates Monday and the "short-volatility" blowup is long forgotten. The contrarian bears like to point at "complacency" as a potential market negative but, more often than not, the positive momentum crushes those types of worries.
One interesting event that is occurring Tuesday is a congressional election in Pennsylvania where President Trump campaigned this weekend. The polls show that the Democratic candidate, Conor Lamb, has a slight edge, but the Republicans are used to scoffing at such predictions.
It will be interesting to see how the market reacts to the results on Wednesday morning. Trump critics don't want to admit that Trump has been a catalyst for strong market action but if the Republican loses and the market reacts, then they are likely to be shouting from the rooftops about the political problems from Trump and the market may not like that.
At the moment the price action is so complacent that is downright blissful.
One name I've been adding today is Rise Education Cayman Ltd. (REDU) , which is a China-based company that teaches English. It is reporting earnings on Thursday morning and has a nice-looking chart and is now back to the levels it hit on its first day of trading in October. The stock trades thin but it has had good support and an interesting chart.
