The folks in the business media are searching for some news to explain the market strength, but it really is just plain old momentum. Good earnings from Johnson&Johnson (JNJ) and Goldman Sachs (GS) are offsetting poor reports from Netflix (NFLX) and IBM (IBM), but this market is mainly focused on financials, mining and commodities. Silver, in particular, is seeing some massive chasing.
I've been trying to remind readers lately that it isn't a time to be too clever. You can easily think yourself out of this market, if you focus too hard on trying to predict a top. There are plenty of good bearish arguments, but they are powerless against positive momentum.
The biggest challenge of this market isn't being bullish, but trying to keep pace. If you take profits into strength, it is quite difficult to put that money back to work, particularly if you are looking at some of the miners that have gone parabolic.
I continue to focus on mining stocks and am very pleased with the way Teck Resources (TCK), my Stock of the Week, has acted. I've taken some profits after a better than 20% move off of yesterday's open. A few other small-caps, such as Integrated Electrical Services (IESC), MediWound (MDWD), ORBCOMM (ORBC) and Five9 (FIVN), are on my radar.
This action is feeling a bit frothy, but sticking with momentum is working much better than fighting it.