There are markets that are primarily driven by the indices and there are markets that are primarily driven by individual stocks. This is the latter. The DJIA is trading close to flat but there is some exceptionally strong action in individual stocks. Breadth is running a robust 4600 gainers to 2100 decliners and new 12-month highs has expanded to over 400.
That is bull market type action and it probably has helped that the bears have been focused on the six day losing streak for the DJIA. The Dow is often the most misleading of the major indices because it is calculated based on the prices of stocks rather than market cap. Boeing (BA) has the most weight in the DJIA although there are about 14 other stocks with larger market caps.
What is important about this market isn't that General Electric (GE) is leaving the DJIA or that Starbucks (SBUX) is getting slammed for being a mature company with limited growth. The important thing is that traders are still finding plenty of stocks that they want to buy. Sentiment is very positive, regardless of what the indices may say.
Once again I'm having good luck with the biotechnology group. Sarepta Therapeutics (SRPT) , Sangamo (SGMO) , Coherus BioSciences (CHRS) , Fate Therapeutics (FATE) and Neptune Technologies (NEPT) are all chugging along nicely. Other names like LiveXLive Media (LIVX) , Baozun (BZUN) and Intelsat SA (I) are cruising along as well.
I'll be looking for some new buys into the close. One bottom fish position I've been building is Casa Systems (CASA) . The chart isn't very attractive but it does look like its finding some support around $18.