It was another positive day for the indices. Although the gains were minimal, breadth mediocre and volume light, the only way to trade this market is long.
Even a comment by Senate John McCain that the House tax bill is dead on arrival in the Senate barely caused the market to blink. A potential Disney (DIS) deal with 21st Century Fox (FOXA) gave the business media something to talk about but it was just another slow but positive day with no sign that the market is about to slow.
Trying to trade the indices is a tremendously tedious exercise right now. Fortunately, there is action in individual stocks. There was some crazy speculative action in junk, bulk shippers and oil-related names did well again. The FAANG names were mixed but Amazon (AMZN) and Alibaba (BABA) held things up. Apple (AAPL) also was a big boost to the indices.
Breadth on the Nasdaq was about 1,600 to 1,350 which isn't very impressive given a rise of 0.34% but that is the story lately. A few bigger names are carrying this market but the narrowness doesn't seem to be causing any major problems. At some point things will either broaden again and join the big cap party or the big caps will revert to the mean but that timing issue is the big problem.
We have some poor earnings reports hitting after the close but nothing that is going to cause a major problem. Momentum is overcoming any and all negatives. Stay with the longs as long as possible.
Have a good evening. I'll see you tomorrow.