The movement in the indexes was sedate on Wednesday, but the stock-picking and pockets of momentum continue to reward aggressive traders. Even with the Russell 2000 stumbling with a loss of about 0.7%, there were still hundreds of smaller stocks doing well.
To make things even more bullish, there was some rotation back into the FATMAAN names that have been lagging lately, and the Nasdaq 100 exchange-traded fund (QQQ) was the day's big winner. The S&P 500 has been in a tight range for five days now and is hardly extended, especially in view of many individual stocks.
Traders should take note of Newton's First Law of Motion, which states that a body in motion tends to stay in motion unless acted upon by an outside force. Stocks work in much the same way. They tend to continue to trend in the same direction until there is some good reason for them not to.
My best advice for this market environment is to keep doing what is working until it stops working. What is working is picking stocks and trading them aggressively. That isn't always easy, but if you keep working at it, the chances the market will reward you are quite good.
This sort of action won't last forever, but it does have a tendency to persist longer than seems reasonable. Enjoy it while you can.
Have a good evening. I'll see you tomorrow.