The SPY gapped up for the fourth day in a row and you really have to wonder if we are finally due for some rest. As is often the case when we are close to breakout levels, market players push hard to hit the new highs before they relent.
It is important to keep in mind that strong action like this tends to create underlying support. There are a large group of folks that are bullish but aren't inclined to chase. They want lower entry points. Many funds focus on reducing their cost basis and are buyers on weakness, rather than strength.
Another dynamic that tends to occur in this sort of market action is that the overanxious bears are very quick to proclaim a major turn at the first sign of any weakness. It is understandable that they want confirmation of their theories, but weakness in this market is more bullish than bearish.
I'm actually rooting for some weakness so I can add back some positions I sold. One that I did add today was last week's stock of the week, Yirendai (YRD) . Also Enerplus (ERF) off my morning watch list is of interest.Here are some momentum names that I am watching. I've mentioned quite a few of them here, but most I have sold into strength and want to re-buy as they set up again: Weibo ( WB) , Veeva Systems ( VEEV) , Gigamon ( GIMO) , Acacia Communications ( ACIA) , AlarmCom ( ALRM) , Teck Resources ( TCK) , Silver Standard Resources ( SSRI) , Silicon Motion Technology ( SIMO) , TESARO ( TSRO) and BioTelemetry ( BEAT) .