Special Bulletin: February 13th, 2019

As we reflect fondly on the rally of 2019 this eve of Valentines day, it appears that institutions are again falling in love with stocks and embracing the markets rally. Their desire has been re-ignited for stocks as they have offered sweet returns since the follow-through day of January 4th. Investors admiration appears the strongest for the growth stocks of the computer software -Enterprise group, the darlings of the new year.

While last years market was no bed of roses, this year continues to exhibit signs of internal technical strength and even budding investor optimism. Last December, during the bear market, we suggested the market was descending “a slope of hope”. It appears the trend has now returned to the more natural climbing “a wall of worry”. In spite of many possible large, looming threats (e.g. China trade talks, Brexit, US Govt shutdown, & the Fed raising rates), investors are choosing to look ahead and apparently see positive outcomes. That’s as sweet as chocolates!

But guard your heart. While it’s easy to get caught up in an exciting rally, risks remain and the odds are still high for some sort of sharp down move that leads to a higher-low retest. They say that love is blind. True. But when applying it to the stock market, that sort of apathy can lead to a heartbreak.

Have a Triumphant day! ®    Ps. Happy Valentines day to my sweet wife Karen, the love of my life!