The stealth rally continued today as the S&P and Dow traded to new all-time highs again in today’s session. The market opened around the flat-line but was off to the races once the bell rang following bullish comments from David Tepper on his morning appearance on CNBC. The S&P finished the day up 1.01%, the Dow up 0.82% and the Nasdaq up 0.69%.
This market does not seem to know the term “rest” this year. After a few sessions of holding above 1622, the new upper level floor of support, the rally extended higher today with the banks leading the charge. The old adage, “sell in May, go away” has not held true this year as the S&P is up about 3.3% this month in a short-time. The strength is impressive as the S&P has failed to trade below a previous day’s low on its most recent climb above 1597. Earlier this year, we stated if the S&P traded above 1576, it had a measured move to 1700 by 2015. At this rate, it could happen by the end of the month!
The banks woke-up in today’s session as new buys whereas the Biotechs continued higher from the most recent entries and the high-beta flyers like Google (GOOG) and Priceline (PCLN) hit new all-time highs. Although the market has bene on a tear lately, we do not chase excitement. Instead it would be prudent to book some profits at this stage of the rally and hold the other portion of your winners.
Disclosure: Marc Sperling is long BIDU, SHLD, WYNN, GS, LNKD, AMGN, ZNGA, FB, OPEN, ANTH, V, AMPE, OSTK, EWJ, YELP, CROX, SHOS. Long calls in the following stocks: SHLD, EWJ, ZNGA, CROX, BBRY, FB, PG, BBRY, AMGN, TBT, AWAY, VHC, LNKD, GNRC, GS, CF, FAS, AAPL. Short SPY, GLD.