The pattern continues. The indices hit record highs but the gains were small and volatility was suppressed. Breadth was pretty good, but this unrelenting uptrend doesn't seem to generate much euphoria. There may be quite a bit of bullishness out there, but it is a product of the fear of missing out rather than the greed of piling up more gains.
The most notable action today was a sharp reversal in biotechnology stocks following comments about drug pricing by President Trump and very strong action in a number of big-cap China names. Stocks such as YY Inc. (YY) , Baidu (BIDU) , BitAuto (BITA) and Yirendai (YRD) all hit new highs.
Apple (AAPL) did some heavy lifting for the Nasdaq brothers, but FAANG names were mixed. Expectations for Netflix (NFLX) earnings tonight are extremely high, but the company tends to lowball so a solid report is needed. The stock is trading up initially on what looks like a slight beat but has faded a bit. This report will be a good test of the market mood tomorrow. It is a potential "sell the news" situation, but with a trend this strong in the overall market, the dip buyers will be lurking.
Nothing much changed today. It was essentially the same action we've seen for weeks with a little rotation out of small-caps and into some other sectors. There continues to be no reason to anticipate that a turn is about to occur.
Have a good evening. I'll see you tomorrow.
Join Jim Cramer, CNBC's Jon Najarian and Other Experts Oct. 28 in New York
Jim Cramer will host CNBC's Jon Najarian, TD Ameritrade's JJ Kinahan, famed analytics expert Marc Chaikin and other market mavens on Oct. 28 in New York City to share successful strategies for active investors.
You can join them as they discuss how smart investors can make the most of options trading, futures contracts, fundamental and quantitative analysis and great ETFs to buy right now. Participants will also get a chance to meet Jim and other panelists and take photos.
When: Saturday, Oct. 28, 8 a.m.-3 p.m. ET
Where: The Harvard Club of New York, 35 W. 44th St., New York, N.Y.
Cost: $250 per person.
Click here for the full conference agenda or to reserve your seat now.
