The stock market is comprised of two distinct elements right now.
There is what I call the "market timing" element, which is focused primarily on the Fed, economic reports, valuations, and the indices.
The other element is "stock-picking." The stock-pickers are mostly oblivious to the "big picture" and focus primarily on finding big moving stocks that they hold for days, hours, or even minutes.
The market-timing element of the market is very challenging. The bears keep trying to anticipate a market top but the bulls continue to celebrate the Fed, which seems to have no limits to its dovishness. The Fed policy meeting and the Jay Powell press conference today had no big surprises and that is all that was needed to take the market higher.
The stock-picking universe is very different than the market-timing universe. There is an absolute frenzy in small stocks such as Kodak (KODK) and Kandi Technologies (KNDI) , both which exploded higher today. The folks that are playing this trading game keep looking for the next big money play while the market-timing gurus scoff at the stupidity of these amateurs who are ignoring the disaster that awaits.
It makes for a very interesting market environment.
My choice is to delve into the stock-picking frenzy and to aggressively trade. It requires constant vigilance and decisive action. It won't last forever but the goal is to build up a cushion of profits so that when the market timers finally have their day we will be well positioned.
Have a good evening. I'll see you Thursday.