The good news is that the indexes continue to trend higher on strong breadth of 5,300 gainers and 2,000 decliners. There were over 700 stocks making new 12-month highs and small caps -- per the Russell fund (IWM) -- outperformed with a gain of nearly 2%.
The bad news is that it is becoming extremely difficult to find good entry points. Pigs are flying and junk is soaring. The quality names are in nosebleed territory, and we aren't seeing any consolidation or rest. That doesn't mean that stocks will suddenly reverse, but it does make it hard to put money to work, without taking on high levels of risk.
In my hunt for some new buys, there were simply too many charts that required chasing. I'm not opposed to the chase, but it seems almost desperate in some cases, and that isn't comforting.
I've been very loudly preaching for a while now to stay with the trend and focus on individual stock picking. That is still my message, but that doesn't mean to be undisciplined with your trading. Make sure you have a plan for protecting gains and don't blindly buy, because you fear missing out. Stay bullish, but the key is keeping accounts as close to highs as possible.
We have quite a few earnings reports, and that will keep the speculative traders busy. The indexes could use some rest to set up better charts, but they don't seem to care what I would like.
Have a great evening. I'll see you tomorrow