The action started slow and choppy this morning but has turned into a "don't short a dull market" rally. The S&P 500 has been running straight up for the last 90 minutes and breadth has moved to 4,300 gainers to 2,650 decliners.
There isn't any specific news to account for the strength. In an environment such as this the attitude often is "if they can't take them down, then we might as well buy them." In addition, these conditions can produce a short squeeze when the bears think the lethargic action will result in a downside drift.
The FAANG names have picked up where they left off on Thursday. There was some disappointment on Friday when the growth names failed to follow through, but they are doing the job today.
I have some trades working, including Bloom Energy (BE) and Pinduoduo (PDD) , but continue to hold high levels of cash and am finding few new buys. I suspect I'm not alone in that regard and that is part of what is driving this action.
There is extremely lopsided action to the upside right now and it feels program-driven to a great degree. There isn't any specific news flow to account for it and what there is largely has a negative tilt. That may actually provide a good environment for the computer algorithms to push the market up.
The action we are seeing is a good example of why price movement is more important than fundamental arguments. if you are trying to embrace a bearish thesis you are being run over by a market that really doesn't care about negative arguments. The price action is positive and that tends to feed on itself.