Last Friday, the lack of enthusiasm didn’t do much to inspire a bullish tone. But, as is typical of this market, it gapped up smartly yesterday morning and never looked back. Now that the New Year has begun, we can now conclude that the Christmas-hating Ebenezer Scrooge from Charles Dickens’ A Christmas Carole has nothing on the market.
During the allegedly favorable holiday season, the indexes proclaimed “Bah! Humbug!” and slowly slid lower. Once the holidays were over, however, the market was finally ready to party. Medical professionals might call this “bi-polar,” but we just call it the QE Ugly Duckling market. While the names have been changed to protect the not-so-innocent, the story remains the same.
Yesterday, big-stock NASDAQ and Chinese-related names led the charge, as money furiously rotated into beaten-down big-stock techs in a raucous start to 2018. The action struck me as distinctly rotational as most big-stock techs came flying up from the depths of their patterns.
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