THE MARKET MOOD
Still GO Sign market.
2017 is shaping up to be a strongly bullish year. There may be some bumps along the way, such as in late February and early March, but these should be considered buying opportunities once they pass.
“The VIX is pricing in very little fear. Professional investors simply are so NOT worried about a bear market in 2017 that they are not paying insurance risk to protect themselves against it. This is interesting. Something could easily come along and surprise the well-informed investors, but seven out of ten times they are going to be right so it is hard to try and trade against them. The best chance seems to be to stay bullish and keep plugging away.”
Happy New Year!
“We cannot argue with success! Although the Russell 2000 Index–which at times can act as a leading indicator to the broad market—appears to be losing steam, price tells us we are in a bull market.
We can remain “long and strong” until the SPY signals us otherwise. Right now, the 14-week SMA rests at about 220 on the weekly SPY chart. As Gordon notes, we may be looking a weakness toward February and March. Stay safe and keep green on your screen!”
May your 2017 be a Prosperous New Year!
Keep green on your screen!