You wouldn't know it by looking at the DJIA or the S&P 500 market, but there is extremely strong trading activity taking place under the surface of this market. I have the longest list I've ever seen of stocks that are up more than 20% in a single day. Breadth is only running around 3400 gainers and 4000 decliners, but there are over 700 stocks hitting new 12-month highs.
Although you won't see this wild action in major indices, even the major brokers are staining due to the sharp increase in trading. Brokers like Schwab (SCHW) had been unable to handle the jump in action that is taking place.
This action has nothing to do with news, fundamentals, or even technical action. It is just straight out speculation, and traders are aggressively looking for the next big mover.
Of course, the pompous 'smart money' is warning the dumb small traders that this action won't last, but small, aggressive traders are doing so well with the chasing that they are likely to continue for a while.
The toughest part of this market is staying with momentum when it is red hot like this. I find that the best approach is to take some partial profits into strength and then look for entries on pullbacks and consolidations.
Some of the main stocks on my radar this morning include: (NETE) , (SOL) , (DFLYF) , (AUPH) , (PEIX) , (GMBL) , (VVPR) , (DMTK) , (CCIV) , (NNDM) , (GOGO) , (GRWG) , (BGFV) , (LAC) , (SOLO) , (RIDE) .
There is so much strong action that it is overwhelming and hard to keep track of. I'm staying with it as long as it lasts.
