After 3 days of mild “rest” – and the first down day of the year (!!) for the S&P 500, bulls came back with bells on Thursday and Friday, driving indexes to record highs yet again. This is starting to get “parabolic”… some shades of the type of things we saw in 1999. (See the S&P 500 and NASDAQ charts below) The S&P 500 gained 1.6% and the NASDAQ 1.7% for the week.
“This reminds me of January 2000,” said Kent Engelke, chief economic strategist, at Capitol Securities Management, which manages $4 billion in assets, referring to the nearly unceasing climb to records for stocks and the unease it can inspire. “It’s scary, the unrelenting advance,” he added.
“The move isn’t about fundamentals anymore, but the overall euphoria,” said Jason Browne, chief investment officer of FundX Investment Group. “When we do get negative moves we don’t hold them; the environment pushes people to buy dips. Will that last forever? Of course not. You have to hope people are being realistic.”
Economic news was sparse and not market moving. But we’ll highlight retail sales:
Sales at U.S. retailers rose 0.4% in December, a fourth straight monthly gain. Excluding automobiles and gasoline, retail sales also rose 0.4% last month.
Earnings season kicked off late in the week with some of the mega financials providing solid #s.
We’ll skip the crypto currency pricing this week as the money seems to have moved from the currencies themselves to any equity announcing “blockchain”.Continue reading