Good morning,
Things are humming. Stocks are soaring. The economy is fine. Earnings are on fire. And in general, it doesn’t appear that investors actually care whether gas prices are high or low, the Fed hikes or doesn’t, or nearly anything else.
And that’s the power of technical analysis. Sometimes the market just wants higher, and you ride that trend.
If I’m being honest, I don’t see any major red flags. And ahead of any major tops, we typically see some.
The only real callout is sentiment. Not by every measure. But the majority are running hot, investors aren’t really paying up for protection, and yes, anecdotally, the victory laps on my TV screen and Twitter feed seem to be at multi-year highs.
This is more of a tactical risk than a strategic one, but the reason today’s title is “The market’s biggest risk isn’t in this report” is because you don’t know what it will be. Corrections don’t happen without a catalyst, but when things get priced for perfection, the only thing we know is that perfection rarely happens.
So, stay long. Stay bullish, but keep your head on a swivel.
This week’s report will review:
S&P 500 technicals and breadth
A new high in the Russell 2000
Sentiment
Biggest beneficiaries of a weaker dollar
ETF movers
Fixed income
and more!
