Welcome to November, which historically kicks off the best time of the year for the market.
The first day of the new month is off with a bang so far on Wednesday. Market pundits are trying to explain why the action is positive, but it's mainly good old-fashioned momentum that's driving this action.
News that the announcement of the House's tax-reform proposal has been pushed back to Thursday is having no impact so far, even though it's quite clear that the Republicans are having a hard time making a deal. The goal of passing a tax bill in the House by Thanksgiving seems unlikely, but the market seems unconcerned.
Another news event that's scheduled for Wednesday is the announcement of the Federal Open Market Committee's interest rate decision at 2 p.m. ET. It's widely anticipated that rates will hold steady and that no major move will be made. However, the market will be looking for clues to solidify its belief that a hike will be announced in December.
It's also likely that President Trump will announce his nomination for the next Federal Reserve chair in the next few days. The market is anticipating that Jerome Powell will be the choice, but we still may see a reaction to the news.
The other big news events Wednesday are earnings reports from Facebook Inc. (FB) and Tesla Inc. (TSLA) , along with dozens of other names. Earnings have been driving this market to new highs on almost-daily basis, and expectations for more positive news are quite high.
The thing that's most interesting about third-quarter earnings is the appetite that market players have for chasing good news. There are no "sell the news" reactions to reports. Market players feel they have no choice but to pay up in order to put money to work.
As I discussed on Tuesday, I believe it's possible that a struggle with tax policy could trip up this market. However, the GOP's delay is having no impact so far. Still, this market has been running for many months on the belief that tax policy would give it a further boost, so the potential for disappointment is high.
Even if investors do have concerns about issues such as tax policy, there is no choice but to defer to the price action and strong momentum. Trying to time a market turn on news event is a bear killer. The market will let us know when negative news matters ... but today is not the day.
(This column originally appeared at 7:51 a.m. ET on on Real Money, our premium site for active traders. Click here to get great columns like this from Jim Cramer and other writers even earlier in the trading day.)