To me, there is an unreal, different and abnormal feel to Friday's stock market action.
As I have repeatedly written, there is nothing normal about a market dominated by passive investing (ETFs and quant strategies) in which every dip is aggressively bought.
There is also, once again, a preponderance of predictable "I told you so's" responsed in the social and business media -- it seems that nearly "everyone" expected Friday's resurgence after Thursday's schmeissing.
The only one I know who called and saw the day properly was Jim "El Capitan" Cramer who memoralized his bullish views in his opening missive, I Think This Market's Just Been Dumb, written at 6 a.m.
As for me, I have absolutely no clue what is contributing to the large gains today. None.
The House's passage of the tax reform was fully anticipated. Sure Cisco's (CSCO) - Get ReportEPS was above consensus, but the company's shares don't hold the importance that they did in 2000. WalMart's (WMT) - Get Reportnumbers were strong, but I don't believe it was +$9 strong. I could go on and on!
As to tomorrow, there is no certainty that today's uptrend will be or will not be sustained.
When puzzled, I typically trade less, but my timeframe (of six to 12 months) provides me with the courage of being opportunistic in my trades (short and long).
And I have no problem in shorting this ramp within the context of that timeframe. Which is exactly what I am doing now.
Originally published Nov. 16 on RealMoney Pro.
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