Thanksgiving Eve was solid for the market, as momentum darlings (Robinhood Markets (HOOD), Applovin Corp (APP), and First Solar (FSLR)) reignited. The most compelling action was weakness in software, which could be the biggest tech loser in the artificial intelligence (AI) world.

Momo is Back

The same tide of buying lifted all niches of the equities market, but momentum led the way in each size category on Wednesday.

The action in low volatility and quality underscores the fact that there is still anxiety and reluctance.

More Than Tech

The Momentum ETF is more than just Technology (XLK) and Communication Services (XLC) stocks.  Financials (XLF) and Industrials (XLI) have heavy weightings, and individual names, like Eli Lilly and Co., (LLY), have become momentum juggernauts. In this environment, it's essential to have exposure to these names – even institutions are increasingly looking for instant success and seeking out Momo.

It's Beginning to Look a Lot Like Christmas

I hope everyone had a great Thanksgiving. Now, we are beginning to look toward Christmas, which means this could really be the most wonderful time of the year.

Historically, that’s been the case.

Today’s Session

Don’t look now, but the ten-year yield (TNX) is under 4.0%. This is great news on several fronts.

The Truth

Technicians are in a frenzy over potential Zweig and Whaley Breadth Thrusts. I ignore a lot of these seminal moments like the recent Hindenburg thing. There is something to these thrusts, which I think boils down to monumental reversal moves that we’ve seen over the past four sessions.

Today, we need to see significant net advancers over decliners on the NYSE.

As a reminder the market will close early at 1 P.M. EST today and there will not be an afternoon note.