No matter what or who you think is responsible for the current strength in equities, it is impossible to ignore the one-way price action. A correction would be healthy, but the market is saying, “Who needs healthy? Let’s party!” After last week’s swift and decisive reversal, the market is now accelerating out of the current uptrend. Volume remains light, but the majority of sectors and stocks are getting in on the action.
Market leader Apple Inc. (AAPL) closed on the highs once again to lead by example. Fellow tech giant Amazon.com, Inc. (AMZN), which has become somewhat of a sector laggard, had a strong day up nearly 4%. The rare earth group got a big pop, led by Molycorp, Inc. (MCP) and Avalon Rare Earth Metals Inc. (AVL) which were up 8% and 13%, respectively.
Gold held its morning gap up, but was outdone by silver once again, which took out an important resistance zone and should be back to highs before long. Gold was boosted by news that JP Morgan will begin accepting it as collateral for REPOs, a move that legitimizes the metal as an alternate form of currency.
*DISCLOSURE: Scott is long GLD, SHZ, AAPL, INTC; Short SPY.
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