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) EPS was above consensus, but the company's shares don't hold the importance that they did in 2000. WalMart's (WMT) numbers 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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