Stocks ebbed and flowed, drifting around all day as hopes that Congress would agree on a fiscal stimulus deal. Meetings are ongoing and there is likely to be some news Thursday afternoon.
Under the surface, market players remained sanguine and continued to have an appetite for new buys. Breadth was feisty with around 4,800 gainers to 2,600 decliners, and there were close to 150 stocks hitting new highs. There was some very strong action in semiconductors -- per the Direxion Daily Semiconductor Bull 3X Shares fund (SOXL) -- and some big-cap technology names like SailPoint Technologies (SAIL) and Enphase Energy (ENPH) broke to new all-time highs. The "CANSLIM" picks were working today.
There is plenty of other news for the market to react to, such as the election and an increased number of Covid cases, but market players only care about the fiscal stimulus news for now. That news will move the market, so it is tough to look much beyond that.
Stock picking continues to work, but there are some landmines out there in special purpose acquisition companies and a few other places. As always, trade management is key.
I'll be looking to play the reaction to this stimulus news when it eventually hits, but for the most part, the stocks that were "good" will probably continue to be good. I'm particularly interested in looking for some lower entry points on favorite names into earnings in a few weeks.
Have a good evening. I'll see you tomorrow.
