After slowing on Tuesday, the momentum picked up again on Wednesday and provoked further anxiety among those convinced that this is just another ridiculous rally driven by foolish buyers who are ignoring a Pandora's box of miseries.
Maybe, but the buying is working and that is why it continues. It isn't rocket science.
There was some late-day weakness following comments by President Trump that he was in no hurry to make a deal with China on trade. That is probably just posturing for negotiating reasons, but it provided a convenient excuse for a little profit-taking.
Even with the late weakness breadth was very strong with over 4,900 gainers to 2,300 decliners and more than 300 new 12-month highs. Obviously, after three days of gains things are a bit extended but our old buddy FOMO (Fear of Missing Out) is a very powerful force. It was reflected in a number of pockets of momentum Wednesday.
The easy thing to do right now is to conclude that the market is overly emotional and to start shorting. That might work but the best opportunities continue to lie in individual stock-picking. That is what you need to focus on in order to make progress in this market.
When the stock picks stop working then we can pay a little more attention to the bears.
Have a good evening. I'll see you Thursday.