The market action can be summed up in one word: momentum. Nothing matters except the fact that the price action is tremendously strong. News is irrelevant and fundamentals don't matter. Market players fear being left behind far more than they fear being caught in a reversal.
Things did slow a little this afternoon, but financials have gone parabolic with names like Goldman Sachs (GS) and Blackstone (BX) acting like Yahoo (YHOO) and Amazon (AMZN) in the early 2000s. The action has some of the same feel of the hysteria back then, but at least there are some solid financial statements.
As I wrote this morning, this is not a market for calling a top. If you don't like to chase, you probably hate this action with a passion, but that doesn't mean you short it. Strong markets stay sticky to the upside. They don't suddenly die. They eventually catch a cold and start to decline, but trying to time that with precision is impossible.
Breadth was solid again at around 2-to-1 positive, but the most striking stat of the day is that nearly 1,500 stocks hit new 12-month highs. The Russell 2000 (IWM) is going straight up. When small-caps are leading, it is sign that speculation is at a fever pitch.
The way to navigate this market is to try not to talk yourself out of the positions that are doing well. The easiest thing to do right now is "lock in profits." It sounds prudent, but when momentum is this strong it usually pays to wait for weakness before you think about selling.
Straight-up markets aren't nearly as easy to trade as many folks would have you believe. Underperformance is unimportant. Just keep plugging away and managing your positions.
Have a good evening. I'll see you tomorrow.