Breadth was very strong Wednesday, with nearly three gainers for each decliner and the Dow Jones racked up another hefty gain and an all-time high, but rotation was the name of the game again.
Money continued to rotate into "reopening" stocks, names that will benefit from a stronger economy, and stocks that will benefit from stimulus payments. Boeing (BA) and Walmart (WMT) are a couple of names in the right sectors that helped to push the Dow higher. The key leadership groups were oils, tankers, and some commodity-related names.
The cannabis stocks that did so well on Tuesday reversed hard Wednesday, but the speculative bitcoin plays did well. Some select special purpose acquisition companies saw bounces and the wild speculative trading in "meme" names like GameStop (GME) picked up.
Despite what looks like generally good action, there was a lot of complaining by traders about the choppiness of the action and the mixed momentum. Chasers were not treated well, and at the end of the day, the stocks that closed near highs were oils, tankers, and a few SPACs. What is missing is the very hot sector action that stock pickers favored for so long. It just isn't quite as easy as it was a month ago.
Overall this is productive action and is the sort of setup that we need for another push higher in the next week or so. The Dow leadership is not necessarily a good thing, but it illustrates that there is still plenty of liquidity looking for a place to go.
Have a good evening. I'll see you tomorrow.