The Nasdaq-100 is rebalancing at the open on Monday and that is causing a little craziness in key components like AAPL, GOOG and MSFT, but overall it was another winning day for the bulls. The indices went straight up all week, with Fed Chairman Ben Bernanke's market friendly comments giving the biggest push. Higher crude oil, the weak U.S. dollar and mediocre economic reports were ignored -- but there were plenty of good earnings reports, so the buying wasn't totally irrational.
Despite the straight-up indices, under the surface the trading has not been all that easy. The number of stocks hitting new highs has been slipping and many of the big-cap momentum names have been trading in a soft manner. There have been some big movers on earnings, but also some quick reversals.
The best way to deal with this market may be by not anticipating weakness. It will happen at some point, but it will cost you dearly if you act prematurely, so don't even try to time a top.
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