With the bulls taking a little hiatus yesterday, we technically broke the six-day rally. Still, with the bears seemingly back in hibernation, the indexes merely drifted sideways the majority of the day.  Both Congressional bodies busy expect some political news volatility as they move forward in the Trump trial and the 1.9 trillion dollar stimulus bill passage.  Facing another big day of earnings data and the CPI numbers before the bell futures markets point to another bullish open.  As we continue to extend the indexes, remember to take some profits.

Asian markets produced another bullish close overnight with modest gain across the board.  However, European markets trade cautiously this morning with flat and mixed results.  U.S. futures with the aroma of freshly printed stimulus money just about the corner, the bulls remain large and in charge. Still, don’t rule out the possibility of some wild price volatility as we digest all the earnings and economic news.

Economic Calendar

Earnings Calendar

On the hump day earnings calendar, we have just short of 100 companies reporting quarterly results.  Notable reports include GM, IRBT, ELY, NLY, ARCC, BHF, BG, CDW, CINF, CME, KO, CXW, EFX, EQIX, EQR, EXEL, HP, IFF, IPG, IQV, KGC, MGM, ORLY, PAYC, PAG, SAVE, STAG, TEVA, TM, UBER, UAA, WU, WH, XPO, ZG, & ZMGA.

News & Technicals’

We broke a six-day rally yesterday with the bulls needing a little hiatus and, the bears showed no teeth as the index drifted mostly sideways.  That said, stock pickers enjoyed nice rallies in more than enough stocks to make for a great trading day.  With Senate occupied by the Trump trail and the House moving forward with the 1.9 Trillion dollar stimulus plan, it may be wise to keep an eye on the political news as it could create some price volatility.  As President Biden pushes for herd immunity, anti-vaccine protesters could derail or delay efforts to combat the pandemic.  The J&J CEO is now suggesting that people may need annual Covid vaccine short for several years.  If true, we have a long way to go before returning to normal in light of virus new variants.  Ugg!

Technically speaking, index trends remain bullish, albeit a little stretched in the short-term, but with another round of stimulus checks around the corner, it could stay that way.  I know there is a lot of talk in the market about the possibility of a significant correction that could begin at any time.  Though that may be correct, as traders, the best we can do is stay with and benefit from the wild enthusiasm as long as it lasts.  However, we should avoid overtrading, chasing already extended stocks, and avoid the greed that often gets in the way of making profits.  Remember, consistently profitable traders must get comfortable with taking profits consistently. 

Trade Wisely,

Doug