Friday was one of these days where the action wasn't about the news or the merits of individual stocks. It was primarily a function of positioning, rebalancing of indices, option expiration and things other than the stocks themselves.
At the close, there were huge blocks traded in hundreds of stocks as indices were rebalanced. One example is SmileDirectClub (SDC) , the recent IPO. It was added to various indices and a block of 2,031,216 shares crossed at the close.
The block had nothing to do with the actual stock. It had to be added to indices and brokers used various ways to accumulate the shares so that could be done precisely at 4 p.m. ET at the close on Friday.
Action of this sort is tough to game and makes for tough trading -- and we aren't done with it completely yet as there will continue to be more moves next week for tax planning and portfolio positioning.
We now have 5 ½ trading days left in the year and I'm expecting at least one good bout of selling before we wrap things up. The indices were likely held up Friday by rebalancing and option expiration but now those that are looking to raise some fresh cash for the end of the year will be more inclined to make some moves.
This has been an amazingly strong uptrend. However, it is going to be very lumpy now to end the year. Quite a few traders are already calling it a year and volume will slow, although if you are looking for some opportunities there should be some interesting movement next week.
Finish up that holiday shopping and I'll see you on Monday.