Whatever worries there were Tuesday they have now been forgotten. One of these days there is going to be some downside momentum generated by a crisis like Italian bonds but Wednesday is not the day. Market players have been conditioned to buy any and all dips regardless of what the headlines might be.
The indices are off to a strong start with the Russell 2000 ETF (IWM) hitting new all-time highs. The Nasdaq 100 did well Tuesday but is lagging a bit as some money rotates back into the financials and banks after yesterday's carnage. The bank charts still look extremely poor and I have no interest in that group at this time.
The best group on my screens this morning is China-related. Alibaba (BABA) is my Stock of the Week but there is always good strength in other names I've mentioned lately including iQIYI (IQ) , Bilibili (BILI) and HUYA Inc. (HUYA) . I'm also interested in building Momo Inc. (MOMO) as it develops.
This is a market for stock-pickers. The key is to be in the right sectors and to avoid the battlegrounds like banks. Strong charts are working while big picture arguments are lagging. There are lots of pundits telling us this market is doomed but too many stocks are doing well right now for us to be pessimistic.