It is getting frothy out there. We are in the midst of yet another V shaped rally off a bottom, similar to so many during the quantitative easing era. Earnings from Google (GOOG) yesterday seemed to light a fire under all the momentum type of stocks, especially the technology type today. The NASDAQ surged 1.32% and the NASDAQ gained 0.65%, as we have seen an almost straight up move since a week ago Wednesday. We don't show the 5 day moving average on our charts since it is a very short term indicator but the indexes are as far above their 5 day moving average than they have been at any point in 2013. So we are at a bit of an extreme level.
The NYSE McClellan Oscillator is now in extreme overbought after being extreme oversold just a week and a half ago; shows you the bipolar nature of investors in modern markets. But once that debt situation in D.C. was kicked down the road, everyone came rushing back into the market.
Google (GOOG) was the superstar today, with the type of move it used to do 5+ years ago....
As Google went so went the Chinese version, Baidu (BIDU) - a name we have highlighted many times the past few months.
Stodgy General Electric (GE) had a big day post earnings.
General Electric said its third-quarter profit and revenue fell as its finance business shrunk, but Wall Street looked beyond those numbers to GE's improving profit margins and growing order demand
Chipotle Mexican Grill (CMG) also had a monster day post earnings.
...the fast-casual restaurant chain posted better-than-expected sales and said it may lift prices in the middle of 2014 to offset higher food costs.
All the usual suspects had big days - Amazon.com (AMZN), LinkedIn (LNKD), Facebook (FB)
The solar stocks continued their recent run - recall this was one area that held up very well during the correction. Here are the 2 American names.
Under Armour (UA) had a big day in retail
Have a good weekend and we'll see you back here Monday.