Once again, we need a new set of adjectives in order to characterize the market's unrelenting rise.
All the major indices hit new all-time highs Thursday, breadth was stellar with around 5,550 gainers to 1,875 decliners, more than 1,200 stocks hit new 12-month highs and the buying even accelerated in the closing minutes of trading.
It is notable that there wasn't any major news headline to drive the action. A good report from Morgan Stanley (MS) helped sentiment and the Senate passed the United States-Mexico-Canada Trade Agreement, as expected, but there was nothing new on the completed U.S.-China trade deal. The news media was distracted by the impeachment news, which is of no interest at all to the stock market.
So why does this very extended market continue to run even higher? There are two reasons: momentum and liquidity. Stocks are running like their hair is on fire and the big worry is being left behind. There still is plenty of capital looking for a place to go and the combination is creating a frenzy.
I usually don't care for historical parallels but this trading is the closest I've experienced to the bubble days of 1999-2000. The movement back then was even more frenzied but I don't recall any other runs in the last 20 years having this level of euphoria.
This won't last forever and is sure to cause some pain. However, until it ends there is not much choice but to hold on and ride it as long as possible.
Have a good evening. I'll see you Friday.