The first two months have been fantabulous and the rally seems to be marching on to its all time highs as March rolls on.
Hitherto the Markets have cleared all the major hurdles of 2600, 2700 and more recently the formidable 2800 where it failed several times. Now what? All eyes are set to reclaim the all time high of 2930 even though we hit a number of bad economic data last week. Puzzling? Yeah, but what’s the fuel behind this rally? Trump. He extended his March 1st deadline of trade resolution with China. Fed is dovish and some Market pundits are even dreaming of rate cuts going forward! Bears are eating crow as this rally grinds higher but it is interesting to see metals and utilities rise alongside the Markets. This happens when there is fear of crash and fear of missing out (FOMO) at the same time.
We were over sold in December and had the worst month ever in stock market history. Now we have one of the best rallies in almost three decades and it might very well end up being the best rally ever. Just like the weather, Markets are exhibiting extremities and the rally might march ahead as the Pied Piper (Mr. Trump) continues to play his tune.
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