Momentum Wrap – Back Near All-Time Highs. Here Comes The Sun?

The Dow and the S&P 500 briefly tagged new all-time highs intraday, quickly erasing the losses from last week. Yes, the move higher has been on below the average volume, but one could make the argument that “new highs + low volume” could mean lack of sellers. Forget about the volume. What makes this move suspicious is the number of new 52-week highs – it was not impressive at all. The losers from last week (basic materials and energy, were among the best performers on Tuesday.

This environment is the definition of a “market of stocks”. There are good opportunities for both bulls and bears, more for the former though.

New Highs

30 new all-time highs among stocks that gained 1% or more: SCTY APO WOR FRC FMX WBK NGL COG NICK …

76 new 52-week highs among stocks that appreciated 1%+ today. Some of the notable movers:

• After getting decimated in the past 6 weeks, solar stocks put on an epic rally. The solar ETF $TAN gained 15%. Elon Musk’s SolarCity ($SCTY) closed at new all-time highs. First Solar broke out to new 52-week highs after issuing better than expected outlook for 2013.

• Some of the small cap biotech and drug stocks had a field day – $SGYP, $MNKD, $ASTX $KERX …

• Other notable breakouts: $SSW (shipping), $RAI (tobacco), $SPLK (application software)

StockTwits 50 HighlightsVery mixed day on the list. From one side, there were $ABAX, $WDC and $WOR, which cleared new all-time highs. From another, $OPEN, $CRAY, $SPSC showed notable weakness.

Staying light and nimble is still the name of the game at this point.