The old trading adage "sell in May and go away" is being flipped on its head this month, and the rally shows no signs of abating. Many traders sit on the sidelines on options expiration Fridays, but not even even that could slow down this market today.
While many stocks rested and perhaps saw some "pinning" action today, there were also a lot of impressive upper-level moves.
The banks, which were a focus early in the week in the Morning Call, Price Point Sheet and Off the Charts, were strong today, led by JP Morgan (JPM) as most expect Jamie Dimon to retain his dual CEO and Chairman roles with the company after a protracted battle with the board. Goldman Sachs (GS) and Morgan Stanley (MS) were also strong within the group today.
Within the financial sector, the credit cards were also strong as they continue to grind higher. Visa (NYSE:V) and MasterCard (MA) both finished the day up around 2.6%.
Tesla (TSLA) rested after a volatile, and fruitful week, but Elon Musk's other public venture, Solar City (SCTY) exploded to all-time highs once again after announcing a $500 financing deal with Goldman Sachs, the largest such financing deal for a solar installation in US history. SCTY finished the day up 25%, and still has very substantial short interest.
ExOne (XONE) is my favorite 3-D printing stock because of its industrial and manufacturing applications, but the company delivered a week earnings report earlier in the week and sold off sharply. Yesterday's downside acceleration, though, proved to be a buying opportunity as the stock bounced 7.35%.
Traders like to see stocks put in tight consolidations after earnings for potential add-on buy set-ups. MercadoLibre (MELI) provided that secondary breakout today, and perhaps one to watch for a similar move next week is Yelp! (YELP).
Shallow pullbacks have been buyable so far this year, and just when many pundits thought a rest might be in the cards, the rally has actually accelerated to the upside. The trend is your friend, so continue to rotate through the most bullish chart set-ups until there is a real composure change.
*DISCLOSURES: No relevant positions
- Investment & Company Information
- Goldman Sachs
- Jamie Dimon