The party is back on. Another huge jump up in the markets today as the bullish party punch bowl (fully spiked) has been refilled. With these kinds of moves it is not a far stretch to think that not only is the party punch spiked, BUT the drinkers also are doing some “uppers” too. Now, what are we celebrating? French election (1st one)? Trump tax plan? North Korea not nuking anyone? Valuations? Naw, not that one cause we don’t care. Oh yeah, we are celebrating because its a perfect “Goldilocks” market and nothing (NOTHING) can go wrong. Wheeee!
With that “sarcastic” and sour grapes intro (not easy being being bearish ‘up here’) let me report that the three major averages (Dow, S&P 500, Nasdaq Comp) all rallied sharply today. Nasdaq broke above 6,000 which, of course, is an all time high. S&P just a few points away. Oh, by the way, interest rates ticked up slightly (10yr 2.23%), oil did NOT participate and the “new safe haven” bitcoin closed at an all time high (gold, not so much). Once again, either the bond gang has it wrong or the market gang is misreading. Somewhere, sometime, something gives.
I am still in the ‘sell in May and go away’ camp and the higher this parabolic move goes the harder the correction will be. Being early and scaling out into strength is just plain smart. I know, this time its different……….till its NOT. Besides, I blame everything on those damn robots (AI) anyway. Wait till they experience a selloff.
So, how was the fintech sector? Great, thank you. The KFTX (KBW NASDAQ fintech index) also closed at an all time high. The index settled at 1157.63, up 4.63 points (+0.40%) with advancing issues totaling 37 and decliners 13. A bit softer than yesterday, but still nice.
So, can all this continue? Is the punch bowl still filled with juice? Momentum is hard to stop when things are so giddy, so grab a glass of punch with one hand and keep the other hand on the front door. Have a good evening.