Even some hawkish hints from Fed Chair Janet Yellen didn't do anything to dent the market action. We had a minor dip on the news that she had said a hike may be appropriate in the next few months if certain conditions are met, but that was quickly forgotten and we ended up closing near the highs. Much to the consternation of the bears, the market simply isn't worried about or doesn't care about a few rate hikes.
This hawkishness is impacting the dollar, but the market is unconcerned about that at the moment. The dollar has been running straight up the entire month of May, yet the indices haven't much cared. That can be an issue, but like higher rates, it is not important at the moment.
Technically, the indices continue to act extremely well. The S&P 500 is right around its highest close of the year and is in strong position to challenge the all-time highs we hit last year. At this point, there are so many eyes on that breakout point that it may be self-fulfilling. What happens after a move to new highs is likely to be tricky, but the odds of a breakout are quite high.
Good stock picking this week was well rewarded. My Stock of the Week, Acacia Communications (ACIA), ran up 30% with hardly a pause. Other names like BioTelemtry (BEAT), Evolent Health (EVH) and NeoGenomics (NEO) managed decent gains.
It is becoming increasingly tough to find easy entry, but this market has positive momentum and that makes it a bit easier.
Have a great long weekend. Do something fun. I'll see you on Tuesday.
