The very strong momentum on narrow breath continues this morning. Apple (AAPL) continues to run higher and it looks like Zoom Communication (ZM) has replaced Tesla (TSLA) as the favorite chase play this morning.
Breadth is better than yesterday with around 3400 gainers to 3700 decliners but it is still surprisingly soft for a market that has so many pockets of strength. Many skeptics have been focused on the poor breadth but it just is not having the sort of impact on indices that they are hoping. In fact, the rotational action probably is far healthier than a market where there is extreme positive breadth. Of course, there are some very extended stocks but there are many other that are not extended and offer prudent entry points.
What is most interesting about this market is how market players continue to hunt for entries despite all the warnings and negativity. The may have some doubts about the market but they are holding their noses and still buying. It is the big cap momentum names that are the key now as small-cap and low-priced speculation has dried up.
I've been accumulating some positions in names like Inseego (INSG) , NIO (NIO) , Xeris Pharmaceuticals (XERS) , and Pacific Ethanol (PEIX) , but have a reduced a few too such as Graf Industrial (GRAF) and Tortoise Acquisition (SHLL) .
Even bulls are growing tired of trying to keep pace with this market but there are few signs that things are about to slow. The weak breadth has been quite misleading.