The action Tuesday felt a bit like mid-February. Meme stocks were making crazy moves, SPACs were hot, biotechnology names were moving, and individual traders were busy chasing speculative names.
The Dow Jones industrial average and S&P 500 were close to flat, but breadth was two-to-one positive, and the Russell 2000 moved up 1% and is within spitting distance of new all-time highs.
It was a market for stock pickers and those that were aggressive same some big moves. My list of 10% movers was too long to count, and there were at least 10 names up more than 30% on the day.
Typically this sort of action causes the folks on traditional Wall Street to express concerns about the action. The commonly used response is "this is sure to end badly." All aggressive rallies end badly. Our job as traders is to make money while we can and step aside when market conditions shift. Quite often, this sort of action will last longer than seems reasonable. If you want to profit from it, it will require a greater appetite for risk.
The good news is that while it was a little frothy in places today, it isn't near the levels that we saw back in January and early February. There is some skepticism, and the indexes are not wildly extended at this point.
It is a very good market for stock pickers right now. Enjoy it while you can.
Have a good evening. I'll see you tomorrow.