$DIA $SPY $QQQ $RUTX $SOX $VXX
“Both Big and Small Cap Bulls are still running” — Paul Ebeling
Last weeks action
The shortened trading wk featured renewed strength in the Mega-caps, which drove the outperformance of the NAS Comp (+4.2%) and lifted the S&P 500 (+1.9%), DJIA (+0.6%), and the Russell 2000 (+2.2%), each benchmark index market new record highs with all of the Key technical indicators flashing Very Bullish at the session close.
- Russell 2000 +9.8% YTD
- NAS Comp +5.1% YTD
- S&P 500 +2.3% YTD
- DJIA +1.3% YTD
On the ‘good’ economic news
This market senses things are not great economically, and that the flood of Mr. Biden’s executive orders is going to limit growth and jobs further.
That being the case, investors reacted to the ‘good‘ news as if it was bad news. They believe that the uptick in economic reports will not last.
And the “go big” aid/relief/stimulus is facing cold headwinds up Pennsylvania Avenue from the Capitol, as lawmakers are calling for Mr. Biden to scale back the $1.9-T Pork filled liberal Christmas wish spending list.
Less aid/relief/stimulus will soon mean less joy for this market and investors.
But, as long as the benchmark indexes have Northside momentum, good breath and volume, we play it that way, always taking what the market gives. When it get toppy it will tell us and we will tell you. For now the support is deep and the resistance is Nil.
Have a healthy week, Keep the Faith!
