Stock Market, Investment StrategyThe indices aren't doing much but a number of high-relative-strength stocks continue to attract momentum players. Names such as Apple (AAPL), Google (GOOG), Home Depot (HD), Kors (KORS), Mellanox (MLNX), Ellie Mae (ELLI) and Francesca's Holdings (FRAN) are running while the market flops around on even breadth.
I suspect that there is a fair amount of performance anxiety after yesterday, and that is causing traders to chase the high beta names in hopes of catching up. Many of these are very extended, but chasing the big movers is what is working best.
As I noted in my opening post, markets like this that are close to their highs tend to be pretty sticky. They may pull back a bit but they don't suddenly collapse. It is very easy to be too cautious too quickly in this environment.
I'm embracing the chasing theme and bought Oplink (OPLK) and KORS this morning. My Stock of the Week, Performant Financial (PFMT), continues to look promising and I may add that as it challenges its high.