The market strength of the last couple of days continues as even the crazy election results are not discouraging buyers.
The narrative that has taken hold is that the likelihood of gridlock is a market-friendly outcome even if the presidential election remains unsettled. It is unlikely there will be any major changes in tax policy soon and that is the main certainty that the market likes.
Most of the action right now is index driven as money is being put to work in ETFs and various sector themes. One obvious clue that this is taking place is that most of the stocks that are up the most are higher priced names that have greater weight in the indices.
Small-caps have bounced back after a weak start but my list of stocks under $10 that are making big moves on higher volume is surprisingly narrow compared to those that are $50 are higher.
The market is doing a remarkably fine job of shrugging off political news and that is helping to create fear of missing out. No one wants the market to run away without them and if it won't selloff on this election news then you have to wonder what will kill it.
Biotechnology is looking much better. There are some sizable moves in the group with Biogen (BIIB) leading the charge. I've reduced a little Horizon (HZNP) but am looking to build this to a large-size as it develops.