After a weak close on Wednesday, many market players were looking for some additional selling pressure Thursday, but the market did a nice job of doing the unexpected.
What we saw was a rotation out of the "value" names that have led recently and back into "growth." Groups like banks and industrials lagged while the FATMAAN names and big-cap technology led the upward charge.
There wasn't any obvious catalyst for this move, other than that traders love to love growth stocks. When they have a choice, they prefer to buy high growth, high beta names, rather than the stodgy value plays. A bank is never going to move the way that Apple (AAPL) or Amazon (AMZN) will.
It didn't hurt that the speculative action in small caps remained extremely strong. The electric vehicle sector is downright frothy and many of the special purpose acquisition names are hot, as well. There is some very good price action and strong charts and with sentiment quite positive, there is little hesitancy to buy them.
Another positive Thursday was a headline that fiscal stimulus negotiations were back on. That popped the indexes late in the day, and took things out at the highs.
We are in one of those environments again where the bears are trying to push a negative narrative, but market players are saying, "Nah, we don't care." They are buying stocks, because they are working and will continue buying until they stop working. Don't underestimate the positive reinforcement that this speculative action is creating.
Have a good evening. I'll see you tomorrow.