Although the indices didn't make much additional progress after a gap-up open to start the day, the S&P 500, Nasdaq, and Nasdaq 100 all managed to close at all-time highs Thursday. Breadth was close to 3 to 1 positive, and the Russell 2000 ( (IWM) ETF) was the leader with a gain of 1.45%.
There was some rotational action intraday as cyclical and value names bounced on news that there was a preliminary deal in Congress on an infrastructure package, but the stock pickers were not ready to give up on the growth names that have finally come alive again.
There was plenty of green on the screens, although there were not that many big movers. Typically, when the Nasdaq and Nasdaq 100 are hitting new all-time highs, we will see a big supply of stocks moving more than 10%. There were a few dozen Thursday, but it was relatively contained compared to what we have seen at other new highs.
The best news about this market right now is that astute stock-pickers are being rewarded. It isn't easy, but you were well rewarded if you caught some of the moves in groups such as cannabis and high-beta growth.
Don't forget that the Russell index rebalancing takes place Friday. There will be a huge surge in volume as hundreds of big blocks cross at the closing bell. There are trillions of dollars involved in this process, and it is going to create some volatility in various names. Just because a stock is being added to the Russell indices doesn't mean it is going to go straight up. I'll have more on this Friday morning.
We are back to a very robust trading environment, but the lesson of earlier this year can't be forgotten: it won't last long, so enjoy it while you can.
Have a good evening. I'll see you Friday.