Strong speculative action combined with fiscal and monetary support continues to drive stocks higher. This is a potent combination and it is overwhelming pandemic and economic worries. Concerns about upcoming earnings reports are understandable but they are not an issue right now.
The market action Monday provides a very good example of why I constantly preach to focus on price action rather than big-picture economic arguments. Traders are aggressively trading and there are opportunities if you stay focused on what is moving.
The EV (electric vehicle) sector remains red hot with names such as Tesla (TSLA) , Grad Industries (GRAF) , Electrameccanica Vehicles (SOLO) , and my Stock of the Week, Ayro, Inc. (AYRO) , trading very strongly.
Two other themes that are popping up are gold and silver miners and Chinese financial firms. Precious metals are moving on weakness in the dollar, which is down due to strength in Chinese equity markets after the China central government promised that it would be supportive of a bull market. That is helping Chinese financial firms such as Noah Holdings (NOAH) and OneConnect Financial Technology (OCFT) .
Another play on my screens is LiveXLive Media (LIVX) , which is breaking out.
There is broad strength with breadth running around 6 to 1 positive. There are around 375 stocks hitting new 12-month highs.
Market timers are watching to see if the opening gap holds but the action continues to be in stock-picking.