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A strong Monday morning pop has quashed the cautious types who argued this market had gotten too far ahead of itself. Of course, we are still running into the end of the quarter, so some fund managers marking up stocks could be at play. However, the underlying action is impressive so far this morning, as I am seeing a vast amount of breakout plays trigger, instead of just a few widely-watched names.
Retail and biotechnology stocks look to be leading, with energy, transports, and the industrials not far behind. It is also impressive to see the Russell 2000 gap above that key 833 level, from which we saw a false breakout last Monday. However, as I indicated on my video recaps all of last week, just because we saw a false breakout does not mean that the bears are are back in charge.
Instead, we are in the “acceptance” phase of this bull run, where you can expect a bit more devious of a tape. Thus, it is not surprising that we saw a headfake last week. The issue now is whether this breakout is for real. Based on the individual action this morning, we are well on our way to see this breakout stick. Seeing as I usually abstain from making any moves in the opening thirty minutes of trading, the true test will be whether these breakouts stick as more volume comes in as the day goes on.
Cool museum. Well worth a trip to see it. The National Air Force Museum around Dayton, OH is also worth the trip. The former has the Enola Gay and the latter Bock’s Car. They’re likely the reason I’m here, as my Dad was slated to take part in the invasion of Japan.
Awesome, thanks.