The market rally that began last Wednesday morning following the consumer price index report extended for the fifth straight day. It is now looking like another "V"-shaped move that makes it tough for underinvested bulls that need entry points and even tougher for bears that are trying to fight the strength.
These moves are often fueled by "fear of missing out," and the longer they last, the greater the inclination to buy dips when one eventually does occur.
Breadth improved with around 5,100 gainers to 3,000 decliners. New 12-month highs expanded to over 330, but that is still well off the levels seen at recent highs. Pockets of speculative action picked up, and the good action in cryptocurrency is helping sentiment, as well.
The bears will tell us that stocks are now extended, and many bulls would like a dip to buy, but this sort of market doesn't make it easy to put money to work very easily. It often requires some chasing, and that is tough for disciplined traders that want the ideal entry points.
We have the meat of earnings season starting now. The Netflix (NFLX) report just hit and is seeing a positive reaction as we await more detailed guidance. On Wednesday night, we have IBM (IBM) and Tesla (TSLA) reporting, which should liven things up a little.
The bulls have the momentum, and things like higher interest rates, supply chain issues, and higher taxes don't have any impact. It is all about the price action and is looking quite good.
Have a good evening. I'll see you tomorrow.