The week that was…
Bullish action continues as the market alternates between periods of rallying with periods of quiet consolidation. This past week was a period of the latter. It was a relatively quiet week other than a bit of a selloff right at the open Thursday. Friday we saw some of the major U.S. banks report. There were a lot of Federal Reserve speakers trotted out – but markets are in more of a Trump Trance right now so most of it was ignored. Still no close on the Dow Jones Industrial Average over 20K, although that level was tickled Monday.
That said we have seen a rotation from the winners of November & December (S&P 500 + Russell 2000), into areas that lagged a bit (mostly on the NASDAQ) i.e. tech. That began late the prior week and continues this past week. Big cap “technology/momentum” stocks saw a return of traders as these names had been ignored in the first 2 months of the rally. The strong start in the NASDAQ may bode well for the year:
The Nasdaq Composite has gained 2.76% in its first five trading days of 2017, marking the gauge’s best start to a year since 2006, when it jumped 5.14%. When the Nasdaq Composite ends a year’s first five sessions with a gain, it has finished the full year in the black 73% of the time, or in 22 out of 30 years.