Fabulous New Highs For Stocks, But Risks Are Higher Than Normal...So Stay Nimble
I just want to reiterate once again what long-time readers already know. We always try to provide comments from both sides of the bull/bear ledger each weekend…while still letting people know which side of that ledger we stand by the end of the our weekend piece. Also, our goal is to focus on what others are not focusing on…and when we do talk about the mainstream issues, we try to look at them from a unique angle. (In other words, it might sound like we’re talking out of both sides of our mouths at times, but in the end, we always let you know where we stand at any given time.)
Table of Contents:
1) Even more new record highs…and there are several reasons to think the stock market could rally much further.
2) However, the risks that exist in today’s markets are much higher than they’ve been for quite a while.
3) The Treasury market can sometimes be a great “timing tool” for the stock market.
4) We’re still very bullish on the energy stocks…as they lag behind the price of crude oil.
5) The broad market always follows significant moves in the bank stocks (but not always small ones).
6) Updating the charts on the major averages. Great breakouts, but they’re getting overbought.
7) It’s still incredibly how similar this rally is to the one four years ago.
8) Liquidity is the only catalyst, but it is definitely an extremely important one.
9) Potpourri….(Included our MUCH-ANTICIPATED Super Bowl prediction.)
10 Summary of our current stance…..The risk/reward equation is shifting.