It’s a party.
The U.S. stock market is throwing a party and just about everyone is invited. The two day post Brexit minicrash is but a distant memory, quickly and decisively replaced by party hats and kazoos.
For quite a while now we’ve been waiting for a significant break from this eighteen month range, and boy did we get it. We could see the signals that a breakout was long overdue, but the direction was up in the air. Initially it appeared the route would be down just after the Brits... decided they were done with the European Union. But that two day mini-crash was simply a fake out before the break out.
And what a break out. The S&P 500 punched through the 2,130 mark like butter and hasn’t looked back. We believe that area could now act as strong support on any type of retrace. So make no mistake, this is a large, diversified stock market party. Just about everyone is here, and the place is jumping. The only ones who haven’t shown up yet are the oils. Maybe they didn’t get the invite, or maybe they want to be fashionably late. But everyone else is here, the band is loud, the dance floor packed, and no one looks like they are heading home anytime soon.
At Good Life we arrived late at usual, but you will find us nibbling a small plate of appetizers in a more quiet spot out by the pool. We tend to be rather shy and reserved at parties, preferring to be the wallflowers that no one remembers seeing. We’ve been to lots of these parties before, and though they are fun while they last, we will be the first ones over the back fence when the cops finally show up. But for now we are here and enjoying the festivities, pacing ourselves, as this party could last a while.