Market Direction and Stock Trends

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Here’s why this bull market will keep going, Trump angst or no
By Barbara Kollmeyer

* January 21, 2017

Critical information for the U.S. trading day

Hail to the chief. Investors are mostly pacing on the sidelines this morning ahead of the new Trump age that’s about to dawn — and wondering whether it’ll be as unpredictable as the past few months suggest.

“Big fear is that the honeymoon is over even before the wedding night,” says Interactive Investor’s Lee Wild in a note. “But despite some selling, no one wants to call this rally over prematurely, and indexes remain near record highs. Even the pros don’t know which way this will go, near-term at least.”

Others mock the anxiety: “The weird and unintuitive truth is since the beginning of this year, the deafening roar of investors’ fear of being wrong has drowned out the fact that nothing is going on. Everyone is psyching themselves out instead of trading,” observed ZeroHedge.

And that brings us to our call of the day , which says no matter how investors feel, the market will go where it wants.


“History reminds us that the recent bullish breakouts from long-term stock-market consolidation patterns do not necessarily need to be coupled with widespread optimism for stocks to advance over the next several years,” writes Chris Ciovacco, blogging for See It Market.

He points to parallels for this broad market with 1982, when stocks managed to top a high hit nine years earlier.

“There were plenty of reasons to be pessimistic in 1982, and yet stocks were able to advance after registering a bull market breakout,” says the chief investment officer for Ciovacco Capital.



War, terror, debt crisis, bankruptcies all topped headlines in 1982. Good times. Check out Ciovacco’s full blog here. .

http://www.marketwatch.com/story/why-the-stock-bulls-will-keep-trampling-over-your-trump-fears-2017-01-20

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