The indices push deeper into new high territory this morning. Breadth is very good with around 5300 gainers to 1700 decliners. The number of new 12-month highs has expanded to around 675. Semiconductors are leading and small caps (IWM) are outperforming.
Market players have one eye on Fed Chair Jerome Powell who is testifying before Congress. Powell is indicating that the Fed is in a good position and hinting that there may not be any change in interest policy for a while. The big question for the market is whether the 'Not QE' Repo program will continue. There are some indications that it will wind down but not for at least a few months. Overall it is market friendly and is helping to keep the upside momentum rolling along.
The coronavirus continues to be a non-event even though there are a few companies like Under Armour (UAA) that indicate it is having an impact on their business. The lack of any spread of the virus in the U.S. is probably the main reason that there is not more concern about it despite the issues in China.
I'm been making a few small trades but I am finding not much I want to do. I added to a position in Co-Diagnostics (CODX) which has a test kit for the coronavirus. It did a private offering this morning at $3.08 which should be support. I'm also slowly building a position in Biohaven Pharmaceuticals (BHVN) which fell sharply yesterday on the failure of one of its drugs. This was not a major program for them and expect the focus to shift back to their migraine program very fast.
It is extremely tough to keep chasing this market higher so I'm staying strategic and am focused on incremental buys and sells.