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Market Update 2.10.2021

Market Update 2.10.2021

February 10, 2021

Today is Wednesday February 10 and it is 6:30am.

As a trend follower, all trend lights are flashing green as all major averages are trading above their respective short, intermediate and long term trend lines. The year thus far is continuing the positive trends from 2020. Last years results exceeded our expectations and 2021 is shaping up on similar positive notes from an investment standpoint. But before getting too exuberant, it stands to reason that we are likely due for a pullback/correction at some point as the current rally is a bit long in the tooth from a technical trading standpoint.

So many have asked, how is the market doing well in the midst of all the negative news swirling around the media. Here are some of the reasons I believe the market can maintain its positive trends.

  1. Record low interest rates.
  2. Loose Monetary Policy.
  3. Continued Fiscal Stimulus.
  4. Janet Yellen (Former Dovish Fed Chairwoman) appointed Treasury Secretary.
  5. Possibility of a significant Infrastructure Stimulus package.
  6. Corporate earnings expectations being revised higher.
  7. Employment recovering and wages improving.
  8. Record real estate sales and rising real estate prices.
  9. Benign Inflation along with a fairly stable to weakening Dollar.
  10. Improving Covid data points.
  11. NYC opening up indoor Dining on Friday at 25% capacity.
  12. Semiconductor/Chip shortages indicating strong demand.

All in all, could we be in for a Roaring 1920’s repeat? So far the 2020’s are showing steady improvement.

And what can you say about the 6th rounder, 199th pick in the 2000 draft. Tom Brady now has 7 Super Bowl trophies in 10 appearances. I can’t imagine anyone breaking this record in my lifetime. Let’s not forget that there were 6 quarterbacks taken ahead of him in the Draft. All long since gone from the NFL. All the so called experts missed on Tom Brady except Bill Belichick. Never judge a book by its cover.