Why The Market Is Surging -- January 7, 2021

Updates

Later, 4:03 p.m. CT: it will be interesting to see what "Fast Money" (CNBC) panel has to say.

• tax hike won't come in 2021;
• short term: rotation in play; somewhat longer term -- "normalized" earnings should suggest caution, but that's a long way out
• hard-pressed to explain movement today after big move yesterday and then actions in DC later in day;
  
• 10-year treasury move; the bond market is moving: concerning; Guy Adami sounds more concerned than usual, and almost angry at times;
  

Sarepta Therapeutics plunges after disappointing muscular dystrophy treatment; shares off almost 55%.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

Original Post

Wow: NASDAQ close closes above 13,000 for first time ever. Dow closes above 31,000 for first time ever. All four major indices close at record highs. Talking head on CNBC at market close says further surge "could be explosive." There is now talk that earnings could come in better than currently expecting.

CNBC talking head suggested to the guest that the huge surge in indices was due to:

• great  hope
• rampant inflation

Talking head who advises very, very wealthy and very, very savvy investors:

• nope: huge amount of money on the sideline; majority of investors still have a lot of money waiting to be invested;
• folks were holding cash hoping for a greater pullback by now; didn't happen; and these investors knew that what went on in DC yesterday wasn't going to affect Biden's being sworn in on schedule;
• risk off trading right now
• $2000 check already baked into market
  
• what happens to Trump between now and January 20, 2021, has no material effect on wealthy, savvy inspectors
  

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

Waiting: Micron earnings. Up $2/share at the close. Here they are: the numbers beat expectations. Shares now up 2% after hours.