As Market Climbs, So Does Level of Fatigue

Rotation that's taking place under the surface must be navigated.
Stocks quotes in this article: IWM, NFLX, NVDA, TTD, NTNX, ICHR, BBRY

The indices continue to slowly move higher and set new records, but there is some rotation taking place under the surface that must be navigated. The Russell 2000 ETF (IWM) and some groups like banking and biotechnology have been lagging, but that money is moving into the big-cap FAANG names and also some technology plays. Netflix (NFLX) and Nvidia (NVDA) are good examples of what is working today. (Nvidia is part of TheStreet's Action Alerts PLUS portfolio.) 

Breadth is quite robust again with about 4,100 gainers to 2,500 decliners. New 12-month highs are piling up as well, but there is quite a bit of fatigue with this never-ending uptrend. Market players are struggling to keep pace. The only way they will be able to catch up is if the market softens, but it refuses to do so.

I keep trying to put capital to work, but the key names I've following such The Trade Desk (TTD) , Nutanix (NTNX) and Ichor Holdings (ICHR) just aren't offering easy entry points. One new name I've been building is BlackBerry (BBRY) , which is breaking out of a nice pattern today but needs higher volume.

The easiest thing to do in this market is tell yourself it can't continue to trend upward in such a relentless fashion. It has to have a meaningful pause at some point even if it isn't a top, but once you start thinking that way it is very easy to find yourself lagging and then having to make up for it by buying in an undisciplined manner.

A headline about record highs produces yawns, but the fact that there is so little celebration is what keeps things running higher.

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At the time of publication, Rev Shark was long TTD, NTNX, ICHR and BBRY, although positions may change at any time.

TAGS: Investing | U.S. Equity | Technology | Consumer Discretionary | Telecom Services | ETFs | Funds | Markets | Stocks

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