Last month we wrote that U.S. stocks had been trading in a fairly tight range for the past several months, and that we were patiently waiting for a break out of that range to provide the direction for the remainder of the year. Well, it wasn’t a week after we penned those words that we got our answer, and that answer is loud and clear.
The market wants to go higher. Despite the very best efforts of the Democratic party and the main stream media pushing their sure-fire recession and stock market on the brink narratives, stocks have hit the open seas and appear to have clear sailing into the close of the year.
Though we continue and will continue to get tossed around the China trade and impeachment waves, we believe the market winds will be at our backs as we exit the better than expected third quarter earnings season straight into the holiday season, and that any pullbacks should be light and buyable. But as always, the stock market is really a market of individual stocks, so watch yours closely, forever looking for any squalls that may be lurking just over the horizon.