The market remains exceptionally strong as the bulls remain in clear control. Stocks refuse to fall in a meaningful fashion. Every time the market hints at pulling back the bulls show up and send stocks soaring.
The two largest “down” days this year happened on June 9th and then last Wednesday, November 27. Both of those days happened on the Nasdaq while other big cap growth stocks sold off in heavy volume. Normally, that marks a near-term high but not in THIS market! Stocks soared on Thursday and the Dow topped 24,000 for the first time ever which was a few days after the S&P 500 topped 2,600. At this point, the market is very extended to the upside and way overdue to pullback. Until it does, weakness should be bought, not sold.
A Closer Look at What Happened Last Week…
Mon-Wed Action:
Stocks ended mixed on Cyber Monday as investors waited to see the results of the first real holiday shopping weekend of the season. So far, the data showed online Black Friday sales rose close to +17% from the same period last year. Meanwhile, Cyber Monday sales also rose double digits vs 2016 numbers.
Thur & Fri Action:
Stocks soared on Thursday, with the Dow rallying over 300 points after it looked like the Senate would pass the tax cut. After the close, the Senate pushed the vote back because they were still lobbying some members. Stocks fell on Friday after a few negative headlines emerged regarding the ongoing Russia investigation.
Market Outlook: Bulls Are Strong
The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape.
