Doug Kass often says that the market has no memory from day to day. That was the case today as the Fed drama on Friday was totally forgotten. The market traded like it was sipping piña coladas while it enjoyed a day at the beach.
While volume was rather light and the intraday range a bit narrow, the tone of trading was very positive. Any worries about macroeconomics or interest rate hikes were forgotten. We had some terrific action in individual stocks and there was no hesitancy to chase the pockets of strength. Breadth was feisty, with 4,600 gainers to 2,100 losers, and more than 360 stocks were hitting all-time highs.
This is exactly the sort of action that has caused the bears so much consternation for so long. There was a good argument for why the market should sell off further after the hawkish jibber-jabber from the Fed on Friday, but market players simply didn't care. Either they don't believe the Fed or they don't respect it. Other than some momentary volatility the Fed is meaningless to the market right now.
I mentioned some of the high flyers in my earlier posts. Names such as Airgain (AIRG) , TPI Composites (TPIC) , Lantheus Holding (LNTH) and Facebook (FB) traded extremely well today. In fact, they traded so well that it makes me a bit nervous.
If you can't actually be at the beach today, this action is almost as good. Have a great evening. I'll see you tomorrow.