Note: The US financial markets, and my office, will be closed Monday, January 18th in honor of the Martin Luther King, Jr. holiday. Normal operations will resume Tuesday, January 19th.
As for the stock market specifically: The markets started off the year badly Monday, but spent the rest of the week running with the bulls. To put it mildly, it is good to start the week at record highs. International markets performed best. The general consensus is that the new administration will keep the fiscal stimulus coming, and the Federal Reserve will continue the monetary stimulus. Here is something that I do believe is consequential since my last weekly commentary.
The bullish percent indicators moved nicely higher as the major market averages hit new highs. We are in the red zone, but we still have the football on first down. The nature of the evidence tells me that we should concentrate on WEALTH ACCUMULATION.
Remember, Xs mean OFFENSE or wealth accumulation, while Os mean DEFENSE, or wealth preservation.