If you are looking for some fundamental reason to explain the continued strength of this market, you aren't going to find one. The indexes ramped higher yet again and were primarily driven by Apple (AAPL) and Facebook (FB) . Apple has had some downgrades recently and even the bulls are wondering if it can continue at this torrid pace, but it doesn't seem to matter. The stock is lifting the entire market and showing no signs of slowing. It may take the implementation of the announced four-for-one share split to help slow it down.
Breadth was narrow all day, but did improve to 3,600 gainers to 3,750 decliners by the close. Small caps lagged and the number of new 12-month highs slowed, but an after surge in the indexes helped to fix some of the internal problems.
Speculative trading continued to be very active with blockchain names, some biotechnology and a mix of other names attracting attention from aggressive traders. It was primarily big caps that drove the market, but the positive trading sentiment still is quite healthy.
How much longer can this action last? Longer than seems reasonable. It is already far beyond what many market participants deem logical, but this is not a market concerned about logic or reason. The action is driven by a combination of "fear of missing out" and good old-fashioned greed. Traders are trying to make as much money as they can right now, and they are not concerned about the danger of being caught in a reversal.
It is a high-stakes game, but the bulls continue to win and there is no way to predict how long it will continue. How you deal with this is a matter of style, and you better be pretty clear what that style is.
Have a good evening. I'll see you tomorrow.
(FB and AMZN are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)
