Our V-shaped ramp continues as the Dow leads the market higher as February looks to erase the entire losses from the first week. Volume was mixed with NYSE volume higher while the NASDAQ fell on the session. This market is certainly resilient and is poised to march into the next month with a tail wind. Things could be much worse, and they could be much better. We have yet to have any normal consolidation. We do know this market is far from normal. Earnings season was a pretty good one with earnings coming in better than expected and now we will await the Fed’s next move during the month of March. It would be nice to see some sort of consolidation from this market where we have light volume pullbacks and tight closes. Who knows what we’ll get, but we will be ready to take on whatever this market can throw at us.
AMZN and NFLX continue to be the beasts of this market. No matter what naysayers do these stocks continue to push higher. Forget high PEs traders are piling into these two names as if their entire careers depend on it. AAPL has rebounded from its late-Jan to early-Feb losses. If that is not the definition of a v-shaped we do not know what is. GOOGL is just hanging in there and is trading inline with the overall market. FANGs are steady as they go.
Small cap stocks could be performing a little better, but for the most part is doing okay. Small cap value is having a tough time. Small cap growth is kicking its butt as of late as investors are stretching for gains. This should continue.
Gains are solid, and we will continue to operate with a bit of caution. Have a great trading day!
