This article was originally published on Real Money at 1:10 p.m. ET on Feb. 10.
The market realized a nice expansion of Thursday's breakout to new highs again today. Breadth is very solid again at better than 2-to-1 positive and the number of new 12-month highs is up to around 680. The FANG names lagged a bit yesterday and are playing catchup today. We also have oil moving strongly and miners are doing well today, but there really isn't anything lagging much. It is just a good breakout gaining some momentum.
The headlines are attributing the strength to further talk about Trump tax policies, but one of the main drivers is that many market players are struggling to keep pace. Many thought this sort of sustained strength was very unlikely and they are still trying to adjust.
Donald Trump was supposed to produce uncertainty and volatility and instead we have a picture-perfect technical breakout from a solid base. It just goes to show how the market doesn't have much respect for arguments that may seem extremely logical.
Despite the good action, I've not been very active today. I've made a couple minor sales and haven't added anything substantial. Hudbay Minerals (HBM) , which I've mentioned several times is breaking higher on strength in copper. Rev Group (REVG) , a recent IPO, continues to see good accumulation. I've mentioned Ichor Holdings (ICHR) in the chip sector previously and am looking to add back to that position as the chart develops. I also like the potential of Keane Group (FRAC) into potential new analyst coverage next week. Cliffs Natural Resources (CLF) disappointed with a secondary offering, but after some digestion the strong numbers should help that one to move again.
The big challenge of this market isn't the timing. It is keeping cash at work in good names. Focus on that and you will be in far better shape than most.