Breadth is running much better than yesterday with about four winners for every three decliners, there are over 250 stocks at new 12-month highs ,and Apple (AAPL) is doing some heavy lifting as it hits a new high and now has a market cap in excess of $2 trillion.
This is a good example of how market trends have a tendency to last longer and go further than you think. It always reminds me of Newton's First Law of Motion: a body in motion will remain in motion in a straight line until acted upon by an outside force. There is no outside force having any impact on this market right now so the trend continues.
The hardest thing to do right now is to stick with the momentum and not give in to the temptation to sell prematurely. For example, one of my favorites, Personalis (PSNL) , has been running nicely and I've taken some partial profits, but I'm trying to stick with it and not sell too much more until there is a technical breach of some sort.
One name I added this morning was Sangamo Therapeutics (SGMO) which should benefit from the issues that BioMarin (BMRN) is having with a hemophilia gene therapy treatment. SGMO was up initially and gave it all back. I'm accumulating shares under $12.
I'm finding that trading is narrowing and is becoming a little more difficult. It feels like we are 'late-stage' in a number of places but that doesn't mean that you take a bearish posture. I have a long list of stocks I'd like to buy on pullbacks to support but so far there isn't much selling taking place.
(Apple is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL? Learn more now.
