The market remains very strong as the Q4 holiday shopping season officially began. The S&P 500 topped 2,600 for the first time as buyers showed up with a very shallow two week pullback. The Nasdaq also hit a fresh record high as stocks continue to surge. The Dow closed below its record high and also remains very strong. The fact that the latest pullback literally only lasted two weeks illustrates how strong the bulls are right now. It is still early, but so far, all the data I’m seeing suggests the Q4 holidays season will be strong which bodes well for both Main Street and by extension Wall Street. The fact that the bulls showed up (again) last week illustrates how strong the market is right now. Remember, in bull markets, weakness should be bought, not sold.
The fact that the latest pullback literally only lasted two weeks illustrates how strong the bulls are right now. It is still early, but so far, all the data I’m seeing suggests the Q4 holidays season will be strong which bodes well for both Main Street and by extension Wall Street. The fact that the bulls showed up (again) last week illustrates how strong the market is right now. Remember, in bull markets, weakness should be bought, not sold.
A Closer Look at What Happened Last Week…
Mon-Wed Action:
Stocks rallied on Monday on the first day of a short holiday week. Stocks rallied nicely on Tuesday after the latest round of mostly positive earnings were announced. The S&P 500 crossed above 2,600 for the first time ever and the Nasdaq hit a fresh record high. Economic data was mostly positive as the Chicago Fed National Activity Index rose in October and Existing home sales beat estimates in October.
Stocks ended mixed on Wednesday as volume remained very light before the holiday. In the afternoon, the Federal Reserve said they were concerned about the economy’s strong rally heading into next year. That is a double-edged sword because on the one hand, that is bullish for stocks but on the other hand if the economy overheats, the Fed will tighten rates faster which is not good for stocks.
Thur & Fri Action:
Stocks were closed on Thursday in observance of Thanksgiving. Stocks rallied on Black Friday as early signs point to a very strong holiday shopping season. Black Friday sales began on Thursday and lasted all night. Additionally, this Q4 holiday shopping season is expected to be strong because the unemployment rate remains low and the economy is strong.
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.
