If you spend too much time puzzling over what is driving the strong action, you are likely to miss out.
Market players very quickly shrugged off some worries about vaccines and unemployment and resumed the steady romp higher. There wasn't any obvious positive news, but optimism about reopening the economy seems to be driving the action. There is still some talk about a resurgence in coronavirus cases, but those concerns about shoved aside as market players continue to look for ways to put idle cash to work.
Even worries that an economic recovery may not occur that quickly doesn't seem to be much of an obstacle. There is great confidence that the Fed will do whatever is needed and there may even be a few more trillions in fiscal stimulus as well
However, it isn't the news flow that is driving the buying. It is unprepared investors with too much cash who are driving the action. They may not believe that this strong action is justified, but they don't want to miss out. The bulls may not have a legitimate reason for a party like this, but we might as well join them rather than sit on the sidelines.
Breadth was very strong again with around 6,100 gainers to 1,400 losers and there were 150 stocks hitting new highs. There are some extremely strong pockets of momentum that are driving speculative traders.
If we spend too much time trying to figure out exactly why the market is acting the way it is, we will probably miss out. It is better to trade first and ask questions later.
Have a good evening. I'll see you tomorrow.