It is one of those days where the buyers show up because it is obvious that the bears can't do anything. Despite plenty of negative news flow, the market just sits there. If you want to do something, the only choice is to find something to buy.
They are buying names like Tesla (TSLA) and Amazon (AMZN) , small oil stocks and Chinese names like Alibaba (BABA) , Momo (MOMO) and Baozun (BZUN) . Breadth is running very strong, with about 4550 gainers to 1725 decliners, but there are only about 120 stocks making new 12-month highs.
This is the type of action that has been driving the bears crazy for a very long time. There is no shortage of great negative arguments. Just read some of the arguments that Doug Kass makes over on RealMoney Pro. It is obvious that there will be a day of reckoning at some point, but trying to time it is just an exercise in futility.
If you can't beat them, then join them. I'm joining them with some buys in Baozun, Conatus Pharmaceuticals (CNAT) and Teekay (TK) . I'm looking for more, but the problem is that while the overall action is quite positive, it doesn't have a lot of momentum. That is why there are so few new 12-month highs.
The bears will have their chance one of these days, but focus on price action and not arguments.
