It was one of those days when doubters gave up the ghost and believers just believed even more. Yesterday, the market took off like a rocket on the sharp increase in initial jobless claims and benign inflation read from the Consumer Price Index (CPI) report.

Sure, some have staked their professional reputation on the destruction of the entire U.S. economy from “Trump’s Trade War,” but it's not happening. In fact, for each tidbit and sign of inflation, there is a counter tidbit and sign that things are manageable.

Those experts don’t have to worry; they never lose their high-paying gigs. That’s why retail investors have outperformed professionals this year.

Many Narratives

The gainers on the session were a mix of bottom-fishing stocks, such as Synopsys Inc (SNPS), which had been hammered, and chasing stocks like Micron Technology (MU), which had been the top chip play for most of the year, as well as those coming on strong – here comes Elon Musk and  Tesla (TSLA).

The money is flowing into TSLA, which is a “feel-good” stock for retail investors. The chart is beautiful.

Small-Caps

The green wave swept everything higher, but small-caps ruled in just about every factor.

Mega-Cap Profit-Taking & Small-Cap Fortunes

Keep in mind, even the slightest rotation out of a trillion-dollar stock is a tidal wave of buying for many of the small-caps – this move is for real.

Let's take advantage.

Today’s Session

There could be some churning today.  When I see eight upgrades on Arista Networks (ANET), but the stock is struggling to stay in the green ahead of the bell, it suggests that some investors are taking profits and moving into new buying.

Buyers are lining up on NASDAQ-listed names, many of which we have on one of our services.

Let's see how things shake out here.