All the major indices, except the Russell 2000, are hitting new highs for the year or close to breakouts. It may seem or simplistic, but this really is a good example of the old saying "never short a dull market." The slow and boring market action tends to have a way of resolving itself to the upside.
When the trading is slow and boring it tends to create an atmosphere that favors increased caution. That caution, in turn, produces more cash on the sidelines and more potential buying power that quickly goes to work when the caution is deemed unwarranted. The mood shifts very fast, from skepticism to fear of missing out (FOMO).
We have a great example of that dynamic Tuesday morning.
There isn't any major news event bringing in buyers but the strong reaction to earnings reports from Twitter (TWTR) , Whirlpool (WHR) and a few others is helping sentiment. The main driver, however, is simply fear that this market may be ready to run again as earnings season heats up.
I bought Twitter in the premarket and will be looking for additional points. This is a very nice, high-volume, breakout from the trading range between $30 and $35 that has been in place for a while and it puts the gap from last July back in play. There really is no resistance up to $41.50.
Meanwhile, my Stock of the Week, Qualcomm (QCOM) , is acting like a classic momentum stock and has a good upgrade Tuesday as well. I am looking to add to a position in Sea, Ltd. (SE) and also have AudioCodes (AUDC) , ACM Research (ACMR) , Chaparral Energy (CHAP) and a few others on my radar.
This market is demonstrating how easily slow and dull can turn into FOMO.