STOCK MARKET COMMENTARY:
FRIDAY, March 07, 2014
MON-WED’S ACTION: STOCKS Surge to New Highs
Over the first weekend in March, Russia invaded Ukraine and stocks gapped down on Monday. Fear was elevated, rumors were flying that Putin would become the next Hitler, this would become Obama’s Bay of Pigs, etc..etc. As a testament to how strong the bulls are right now, the sell-off lasted less than one day. Cooler heads prevailed and Putin pulled back by the end of the day. John Kerry landed in Ukraine on Tuesday and fear subsided very quickly. After the one day sell-off, the bulls returned and sent stocks soaring on Tuesday, helping it become the strongest day of the year. A slew of high beta stocks soared as well after a very brief and healthy pullback. The broad gains sent several key indices soaring to fresh highs and/or 2014 highs which is very encouraging.
THURS & FRI’S ACTION: Bulls Are In Control
MARKET OUTLOOK: STRONG UPTREND
The market is following our script perfectly. In late Jan/early Feb we wrote saying that this appears to be another normal (and healthy) pullback within a broader uptrend. That is exactly what occurred. As always, keep your losses small and never argue with the tape.