The upbeat action on Wednesday afternoon is continuing Thursday morning. The gap-up open is holding up very well, and dip buyers are likely to grow impatient the longer it holds.
Breadth is superb, with around four gainers for each decliner, but the number of new 12-month highs is still very low at around 230 since we are still down substantially from the early September highs.
There are not a lot of 10% movers on my screens, but there is plenty of interest in growth stocks and other secondary stocks that have been building support. While I've been putting some cash to work, I still have over 50% cash in my managed accounts.
I highlighted RDW here Wednesday morning. The stock subsequently caught the attention of social media Discord chat rooms and was blasted higher. It traded over $13 after the close. Some of these amateur chasers found themselves trapped and dumped the stock for big losses. I think this stock has a very solid story and the potential for some exciting news. I've been rebuying shares under $11.25.
If the market has another strong close Thursday, it is going to be bear-killing action. We will see how things develop, but currently, there are positive signs of sustained momentum.