The indices are mixed and breadth is running about 2,900 gainers to 3,800 decliners, while Apple (AAPL) is trading up over 2.3% and helping to offset substantial weakness elsewhere.
Strong momentum in Apple on top of its already strong move following a mediocre earnings report doesn't seem justified but there is speculation that its stock buyback program is hard at work and driving the action. Buybacks not only boost the stock due to their raw buying power but they also squeeze shorts and create fear of missing out which produces more buying pressure.
Another area of the market that is hot Monday is cannabis. The group has been one of the hottest sectors for the last few weeks and momentum players are still willing to chase fit. Names such as Cronos Group (CRON) , Aphria (APHA) , Stocks Under $10 holding Aurora Cannabis (ACB) , Zynerba Pharmaceuticals (ZYNE) and New Age Beverages (NBEV) are all running. My Stock of the Week, Pyxus International (PYX) is a sleeper play in the group.
While the leadership in this market is narrow and that is cause for concern, it is helping to keep the action sticky to the upside. Without Apple doing so well the indices would look much different but that is covering up some problems for now and keep sentiment bullish.
I'm very focused on protecting recent gains right now but I still don't see any reason to rush into index shorts. When Apple reverses that will cause a ripple effect but there are no signs of that yet.