The Dow Jones Industrials lost some of its luster last week, as most of us took some time out to celebrate Thanksgiving. The S&P ended the week basically flat. The overall trend in both indices, however, is steeply up with no sign of a market top in sight.
We wish the Transportation Index would join the party, but it still remains below the high of around 5,000 it made earlier in the year. The divergence between it and the Industrials remains in force.
Nonetheless, market breadth is good, and the Party Season is now in full swing, with Santa Claus popping up in just about every TV commercial. These days, it seems you can barely clean out the roasting pan from one turkey before you’re on a mad dash to prepare for the next holiday feast. In such an atmosphere, who has time to think about selling stocks? Consequently, a market correction this time of year is almost unheard of. That doesn’t mean stocks couldn’t fall a tiny bit, say 3% to 5%, as buying pressure ebbs as well, but we doubt we’ll see a full-blown correction while the fairy lights are glowing.
Of course, if any factor could trigger a drop in stocks prices, the most likely candidate is of course …
THE WILD CARD
… our old friend oil.Read more...
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