This market is now a game of chicken between the funds that are focused on countless metrics that show how extended everything is vs. the momentum players and program traders who aren't going to back off until the price action shifts. The bears keep telling us there is no reason for this one-sided action to continue, but the folks who are holding long are simply ignoring them.
The one thing the bulls and bears do seem to agree upon is that the action is downright nuts. The buy programs went nuts, the put/call ratios are illogical and the volatility measures indicate growing complacency and no fear.
The dilemma of this market is that it is great action for existing positions but terrible if you are trying to find new ones. There are momentum players who have no problem with buying a Goldman Sachs (GS) that has moved straight up 33% in less than a month, but there are many more who wouldn't touch it at this point.
Over 1,200 stocks are making new 12-month highs again today, so there are many others that are technically extended like Goldman Sachs. At the moment, it doesn't matter one bit and it may not matter for a while, but the one great certainty of the market is that the cycle will shift and we'll be wondering how stocks can sink so much when there are lots of good reasons why they shouldn't.
Like many others, I have idle cash I'd love to put to work but I can't find entry points. I'll keep an eye on things of interest like Lumentum (LITE) , but I'm not rushing to build big positions.