The major indices are mixed in the early going but breadth is running a bit soft with about 2,300 advancers to 3,900 decliners. There's strength in the FANG-type names, with Amazon (AMZN) , Tesla (TSLA) , Alphabet (GOOGL) and Facebook (FB) all in positive territory. A number of momentum plays, like Yirendai YRD and Acacia Communications (ACIA) , are still doing well and my current Stock of the Week, Match Group (MTCH) , is acting well.
There was interesting talk about market sentiment on Twitter today, as there are high levels of bullish sentiment but also indications that cash levels are still high.
I've long believed that the financial engineering of central banks has corrupted the traditional way in which contrary sentiment works. The theory is that when there is a high level of bullishness it means that there is less idle cash and nothing left to drive the market higher. That certainly makes sense, but the basic logic is that people act on their market bias. When they are bullish, they keep on buying.
There is a greater tendency these days for bulls to keep more idle cash on hand. There always seems to be a large group of folks struggling with being underinvested. They are bullish and want to buy for a variety of reasons do so incrementally and without any of the zeal that you see in the normal bull market.
There will always be a point where contrary thinking works but it seems increasingly difficult to measure when it really is so extreme that it impairs buying power. I'm not convinced that there is limited buying power now, although sentiment is quite positive.
I'm doing nothing new so far and would not be at all disappointed if selling became more aggressive.