1)      The market reacts positively to bad news. Negative headlines and terrible earnings reports are ignored. As the saying goes, reaction to news is more important than the news itself. Good reaction to bad news is the ultimate indicator of positive sentiment. Never underestimate the power of optimism in the market "“ it feeds on itself and creates positive feedback loop.

2)      Plethora of high-volume breakouts to major new highs, representing different industry groups. The so called “market of stocks” environment.

3)      Low correlation market, which produces both winners and losers. There are good ideas for both bulls and bears.

4)      Defensive sectors underperform. Capital leaves perceived safety and rotates into...