Dow Joins Party. Stocks a Bit Tired
Greetings from 36,000 feet on some bumpy air, which is the norm when I fly. On Monday, the Dow Industrials joined the S&P 500 and NASDAQ 100 in fresh, all-time high territory. That’s now three of the five major stock market indices which have accommodated my bullish forecast. The last two, S&P 400 and Russell 2000 still have a ways to go, but I am still very optimistic that they will join their cousins later this quarter or by early 2020. Both lagging indices are behaving constructively with solid foundations to launch higher. Here are the midcaps below.
With all that said and the endless patting myself on the back for being so bullish, I do not believe adding new money nor getting more aggressive is the right play here. I think there is a decent chance that stocks are peaking in the short-term and will either mildly pull back or move sideways for a spell. I continue to believe that any and all weakness is a buying opportunity until proven otherwise.