The primary market theme all week was "rotation." The week started with a very aggressive move out of the leading groups which include FAANG stocks, technology and biotechnology and into lagging names such as banks and industrials such as General Electric (GE) .
The rotation fizzled out on Wednesday but the growth names came back to life and pushed the indices back to recent highs. On Thursday there was a late selloff on an announcement that President Trump would address some issues related to China. That turned out to be mostly talk and little action and stocks bounced back on Friday afternoon.
All the indices finished higher for the week, However, there were some big inconsistencies due to the battle between "value" and "growth." The problem the market is struggling with is that value stocks are not ideal for leadership. The safe, value plays tend to lead in poor markets when investors are looking for safety. Growth stocks, however, lead in bull markets and that is what we have had off the March lows. Whether the relative strength of value stocks turns out to be negative, we will have to wait and see.
Another interesting development recently is the speculative action in many low-priced and secondary stocks. This has resulted in some pure day-trading similar to what occurred back in the internet bubble days in 2000. It isn't nearly as widespread or as severe but some of the same emotion is present and it offers "fun" trading for those that enjoy that type of "gambling."
This is an unusual market environment and I have no idea where it might lead. For now, the trend continues to be positive but there is no shortage of possible landmines ahead. We'll deal with those as they develop.
Have a great weekend. Do something fun. I'll see you on Monday.