With the market as extended as it is, it certainly wasn't too farfetched to think a decent-sized gap this morning was begging to get faded, but the problem is that the market is concerned about one thing right now, and that's keeping pace. Underinvested market participants (and there are many of them) are sweating over their lack of exposure, which is why the upside is so sticky right now.
By the close, breadth was about 9-to-4 to the positive, and there were over 300 new 52-week highs. Biotech and semiconductors led to the upside, and the only real notable laggard was gold miners, which have been pulling back after a tremendous run over the past several weeks.
Probably the most notable aspect to the action recently has been the amount of momentum under the surface. There's a concern that there are too many names running straight up into earnings reports, and that traders have been scraping the bottom of the barrel, looking for the next runner. That may cause some issues sooner or later, but it's been a while since this market's seen a streak of days where we have a supply of big movers like OpGen (OPGN) , Ocean Power Technologies (OPTT) and SkyPeople Fruit Juice (SPU) , to name just a very few.
There's little question that this market's been frothy, but the key is to keep digging. At some point, investors will find an excuse to start taking profits, but there's been some good trading opportunities out there, and that's what I choose to focus on.
-- Written by Jim Koford