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Market climbing classic wall of worry

Jeff is reporting in from The TradersExpo New York after just stepping off the stage of his afternoon presentation. Similar to other recent appearances the mood in the audience at his workshops and crowd at the event was engaged and looking for answers, but with a decent level of anxiety and concern about the continuation of this “Trump Rally.” Perhaps our Best Six Months seasonal patterns have something to do with it, but one cannot deny the performance since the election has been above average. 

Mr. Trump’s speech tonight to a joint session of Congress may provide deeper insight into what will actually be implemented by this brand new administration. The market itself continues to price in success with accelerating economic growth that will positively impact the stock market. 

But as with the skeptical sentiment Jeff has been sensing on his radar comments like, “With the Dow Jones Industrial Average posting gains in every session since the president promised a ‘phenomenal’ plan to cut taxes, the risk of investor disappointment is high,” from Bloomberg News’ Five Things You Need to Know to Start Your Day, underscore the underlying level of worry in the media, on Main Street and Wall Street. 

This is clearly creating a classic “Wall of Worry” the market loves to climb. Continuing market strength triggered positive readings across the board for our January Indicator Trifecta and outstanding market gains in February as well. While we always remain vigilant for changes in the market climate we are currently in a bullish phase as the last two months of the Best Six Months get under way tomorrow and market strength tends to beget more market strength.