Wednesday's Stock Gains are an Optical Illusion

The Dow hit a new high Wednesday. The S&P 500 was also sporting green arrows. And yet, most investors would tell you it was a miserable session.

Why is that?

Because almost all of the index gains came from one source: Apple's +4.7% post earnings rally. Their $800+ billion market cap holds a lot of sway with these cap weighted indices.

However, the real story of the Wednesday session is best told by the -0.74% drubbing of the midcaps (MDY) and -1.07% shellacking of the smallcaps (IWM). But don't let that fool you either.

A market making new highs will have moments of doubt before making the next move higher. Yet I have little doubt that new record highs at 2500 will be in hand shortly with small and midcaps participating in the gains.

For those seeking a way to do better than the market averages, then consider the keen insight shared in this fresh investment commentary:

Are You Beating the Market This Year?

Best,

Steve Reitmeister

Executive Vice President, Zacks Investment Research

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