It was another upbeat week for stocks, although the indices finished with mixed action in front of the three-day weekend. A late jam job in the last 30 minutes prevented any meaningful downside but it was a choppy and sloppy session Friday on negative breadth of about 3,500 gainers to 3,900 decliners.
There were a few good earnings reports to keep sentiment positive and traders still have an appetite for some speculative action in secondary names such as Virgin Galactic (SPCE) and BioXcel Therapeutics (BTAI) .
Most notable Friday -- and all week -- was that the coronavirus issue is having no negative impact. Even some solid news about the economic damage that might be done is shrugged off by this market. As I discussed earlier, market players tend to think that if the coronavirus issue really was a big problem then it would be reflected in the price action. That logic may prove to be problematic at some point but for now it is enough to keep a very stubborn bid under the market.
Earnings season is mostly over now except for certain small-cap names and there isn't much potential news on the agenda in the short term. The Fed is on hold except for those Repos that seem to supply endless liquidity. There is no major economic news about to hit and even the China trade deal has been almost totally forgotten.
The current uptrend is at extreme levels but it has been at extreme levels for a while and made no difference. One of these days the price action will shift. However, there are no indications when that might occur.
Enjoy the long weekend. I'll see you on Tuesday.
