Small caps, growth stocks, and speculative names had their fourth-straight day of solid action. The "Snake Bite Bottom" last Thursday marked a significant change in market character, and it bodes well for stock pickers are we head into third-quarter earnings and the seasonal strength to end the year.
Of course, the bears are whining about how extended and irrational the indexes now are, but the indexes failed to reflect what was going on in most of the market for many months, and they still don't reflect the reality of the action in a majority of stocks.
There was a bear market for many stocks that started in February, and it now looks like it has ended. That doesn't mean it will be smooth sailing from here, but there is now some significant support on many charts, and the technical setups are looking much better.
This has been a very nice four-day run, but with the Jackson Hole conference on Friday and the potential for some talk about tapering, it is likely some folks will be standing aside, and the momentum may slow. Jackson Hole is already well anticipated, and the market isn't expecting anything major, but it is a convenient catalyst nonetheless and may cause a little volatility.
Stay focused on the stock-picking, and don't worry too much about the "experts" that are focused on the indexes. There are two very different aspects to this market.
Have a good evening. I'll see you tomorrow.