I just spent some time watching the market discussion on Fast Money on CNBC. It was striking that the market they are looking at and contemplating is very different than the market that I'm trading today.
The folks on Fast Money tend to hold the standard big-cap names like Apple (AAPL) and Alphabet (GOOGL) so it is understandable that they aren't thrilled with the action. They see the poor action in precious metals and they see some of the rotation out of growth and into value, but they seem unaware that breadth is round 5150 gainers to 2300 decliners and over 500 stocks are hitting new 12-month highs.
Like many 'traditional' Wall Street players they are blinded by the indices and the action in S&P 500 names. Those stocks are not the story today and if that is your focus you are missing the action.
On my screens, I have the longest list of stocks up more than 10% intraday that I can recall seeing in years. There are over 20 names up more than 20%. The action is very similar in places to what we saw during the internet bubble in 2000 but the stocks that are running are a hodge-podge of names in electric vehicles, bitcoin-related, China, and SPACs.
If the big cap names that the folks on TV love so much were acting this way there would be a frenzy of excitement rather than this dour view that the market may be heading for deeper corrective action as we deal with a surge in Covid cases.
This is a market that is being led by aggressive momentum in small-caps and most of institutional Wall Street is missing not only the story but the gains.
One name I'm adding back to here is Pacific Ethanol (PEIX) . The company produces medical-grade alcohol that is used by companies like Lysol in sanitizers. The stock sold off sharply following a very strong quarter due in part to fear that demand for sanitizers might slow. PEIX has already contracted its supply for next year and there is a great likelihood that there is a fundamental shift in the demand for medical-grade ethanol. I've started to rebuild my position.