Back to autopilot mode….. After some excitement and a potential breakdown in the middle part of April, stocks have resumed their march upward with most indexes notching 10 gains in the past 12 sessions. In this environment the main concern is not piling in when stocks are short term overbought and of course buying every dip. Under the surface a move to more cyclical sectors continues as today was a rare day in 2013 that healthcare, utilities, and consumer staples all sold off yet the market rallied. The S&P 500 gained 0.19% and the NASDAQ 0.42%. News flow was slow; there was some Chinese service data released that showed significant slowing but the market is ignoring it.
The S&P 500 and NASDAQ are both back firmly in channel; while short term overbought they continue to grind up.
The two mega cap technology stocks that investors love are back on track – Apple (AAPL) continues to break out of this recent pattern while Google (GOOG) is making new highs.
Momentum stocks such as Tesla Motors (TSLA) and 3D Systems (DDD) continue to lead the way.
Financial stocks also joined into the festivities after not doing much the past two weeks, see Bank of America (BAC).
Overall, cyclicals continue to see a bid as money rotates out of safety sectors and into these groups.
Bespoke Invest has an interesting chart of how long it has taken for the DJIA to hit its 1000 point increments. You’d think the higher we go the quicker they come since 1000 points on 3000 is much harder than 1000 points on 14,000 but it has not been the case.
To get from 2K to 3K, the DJIA rallied 50% in the span of 1,560 days. To get from 14K to 15K, though, the DJIA only needed to rally a little over 7%, but it still hasn’t been able to do so after more than 2,000 days!