After elections, market made significant gains which many of us may not be expecting and might have missed the train. However, now that we are in the NEW YEAR and market is at all time high and consolidating for few weeks, we should get ours ducks in the row. Earnings season is around the corner and with the way things are going, it appears that market may go into euphoria stage (sudden and significant gains in short period) as it went during 1983 period. BUT WHY?
- All charts appear bullish and showing lot of underlying confidence
- New President appears to be business friendly which shall help the economy until the actual results are out as new policies take time to show effect, in mean time euphoria stage might take stock market to many more HIGHS
- Apart from US, other areas in world does not appear to be stable for investment and capital flows into US are very high which shall provide the much needed fuel for euphoria stage, remember all that matters is perception
- Earnings season is around the corner which might add some hiccups but as long as overall results are acceptable it shall push the market higher, 1 step at a time
- Slow and steady, two step forward one step backwards is how market works and makes most who missed the train more frustrated which becomes the underlying fuel for the rally
Market remains bullish with no concerning signs for now...