It has been a costly mistake if you have not invested in the market due to the concerns of Covid-19 pandemic. The market has discounted the impact of the pandemic as a whole except a few select sectors due to the unprecedented support from the monetary and fiscal policies. While still deep in the uncertainties related to the presidential election, the market looked past it. The underlining bullishness just can’t be ignored. It’s an extremely bullish market.
The NASDAQ has been in tight weekly close in the last three weeks while the small cap Russell 2000, DOW and S&P 500 are showing a slightly stronger picture. In the last ten trading days the market has been trading sideways to consolidate after the rally from the October 30th low.
Next Wednesday marks the beginning of a very seasonally strong period for stocks. Perhaps some good news would magically show up by Wednesday and the market takes a run with it to get out the sideways trading range.
It has only been 3 weeks into the current weekly cycle, so it is quite early in the bullish phase of the weekly cycle. Normally we would start to look for a weekly cycle top around the 13th week, which is right around the inauguration time. Right after 2017 inauguration, the market took off and had a great 2017. We could have a 2017 repeat market performance in 2021 simply due to the 4-year cycle location technically. Fundamentally, the amount of money in the market is the fuel for the bulls. The shorts have had a terrible time trading with the Covid-19 pandemic fundamentals.
The 4-year cycle started in March 2020. Please enjoy the first two years of bull run, which is the strongest bull phase of the 4-year cycle.
We will not publish a weekly blog next Sunday due to Thanksgiving Holiday.
We wish our subscribers a Happy and Safe Thanksgiving!