Once again, bad economic news brings in the dip buyers. The weaker-than-expected ISM Services report caused a little consternation initially as the market ponders whether a slow economy may actually be negative. That used to be fairly standard logic, but these days anything that keeps interest rates lower for longer is reason to keep on buying.
It isn't exactly wild buying today, but the underlying support is strong and breadth continues to stay firmly positive. Of particular interest today is strength in the big-cap growth names such as Amazon (AMZN) , Alphabet (GOOGL) and Facebook (FB) . That is where the money is flowing and that boosts the indices quite nicely. (Amazon is part of TheStreet's Growth Seeker portfolio. Alphabet and Facebook are part of the Action Alerts PLUS portfolio.)
Many bears were lined up and ready for a lousy September, which may be giving us a bit of a contrary boost today. The bear case is just too easy, especially when you consider seasonality, and that likely triggers some of the dip buying. The bears just can't generate momentum and then are forced to keep backing off after a brief foray into the red.
There are some big moves out there as speculative traders stay active. Recent favorite Acacia Communications (ACIA) is up by double digits and other momentum plays like Tesaro (TSRO) and Weibo (WB) are looking good.
We also have some big moves in precious metals, which are a bit worrisome. Gold and silver are trading primarily on a weaker dollar as odds of an interest rate hike decline. These are not sectors that tend to lead the market, but there is enough other leadership to render it irrelevant.
I don't have a lot of new buys, but my Stock of the Week, Shopify (SHOP) , is developing well.