The day before a holiday often has a positive bias. Part of the reason that people tend to be in a positive mood is that they look forward to taking a break. Another reason for the upside bias is that many big fund managers already have made their moves and that leaves the market largely in the hands of amateur traders who enjoy speculative trading.
This year has been full of surprises, but one of the most amazing has been the surge in speculative trading that has similarities to the Internet bubble of 20 years ago. I don't think there is anyone who can claim they saw that development coming when the Covid-19 crisis first started to matter back in late February.
Ironically, one of the key bearish arguments right now is that this speculative trading is excessive, unjustified and unsustainable. The view of many skeptics is that it will come to a painful end and will foreshadow a market collapse like that which occurred in 2000.
The one great certainty of the market is cycles, and there is no doubt the current cycle will give way to different market action. No one knows when that will occur or what the next cycle might be, but there will be many billions of dollars bet on trying to anticipate against a continuation of the current action.
For weeks now, there have been many participants anticipating a shift in the market action. They have incurred substantial opportunity cost due to their anticipation while the "stupid" and "uninformed" have engaged in speculative nonsense.
Institutional Wall Street can't play the short-term speculative action effectively, which means it needs to criticize it and predict the doom of all those that engage in it. The truth is that quick, nimble and strategic traders will do extremely well as they navigate this sort of action. They have no illusions about whether the action is justified or whether the stocks are great values. That stuff is irrelevant. They are simply taking advantage of the opportunities that exist.
The choice is yours. You can scoff at the speculation and repeat the tired cliché that it will end badly, or you can engage in it and try to make a little money.
Regardless of your view, it is the day before a three-day weekend and that favors a continuation of aggressive speculative trading.