Just like yesterday, the indices are moving straight up out of the gate. This is partially a function of the way algos are programmed, but a big part of it is the simple fact that bulls are underinvested. They would prefer to buy dips but when there's no dip, they are forced to chase.
One thing that always irks me when the market is acting this way is the simplistic contrarian comments that made. Suddenly the bears declare that "everyone" is now stupidly bullish. Mainly these comments are just a form of a pre-existing bias because there is no way that you can conclude that market players were well positioned for this sudden move. They are still scrambling to adjust.
My rule about market action like this is not to try too hard to question it. Look for reasons why the trend may continue rather than try to find reasons to question it. When the price action shifts, we will know it as long as we stayed focused.
I'm one of those underinvested bulls looking for more inventory this morning. I can't seem to put enough capital to work in individual stocks. My Stock of the Week, Acacia Communications (ACIA), continues to act like a champion and is now up 24% from Friday's close. Others I've mentioned, such as Natera (NTRA), Celator Pharmaceuticals (CPXX) and BioTelemetry (BEAT), continue to act well.
The main sector popping up on my screen today is oil. There are some nice breakouts in those charts. I'm adding to Teck Resources (TCK), a shale and minerals play that had a buy recommendation and target of $12 from Goldman Sachs on May 16.
I'm sticking with the bullish bias and am looking for more entries.