Although INTC gapped up, then churned after its strong earnings report, the broader market kept on going.
We saw some of the best action since this rally began more than two months ago. Breadth was around 3-to-1 positive, and we had more than 3 billion shares traded on the Nasdaq, which is the highest since the big Jan. 29 selloff, and the highest on a positive day since last September. There has been a lot of talk on the site lately about the lackluster volume during this rally. Will today's surge end up a contrary indicator?
The one word that sums up this market right now is "momentum." The buyers are scrambling to jump in, and this market isn't making it easy. The overbought conditions have been irrelevant. The folks on CNBC simply laugh at anyone who dares to say something bearish.
After a while, it sounds trite to say, "Don't fight the trend." But that's all you really need to know to navigate this market. One thing to watch out for now: An awful lot of folks believe in their own genius just because they were bullish. Riding the momentum train has been the way to go, but be sure to stay vigilant for a shift. There are no signs of it yet, but the one certainly about the market is that conditions will eventually change....