The bulls remain in clear control of this market as the impressive rally continues unchecked. There are a few important things to note:
I’m still of the mindset that we are entering a climax run where the market just takes off and rallies into no-man’s land. Historically, a climax run occurs in the late stages of a bull market and you can easily see the market surge 50% in a few months as the buying frenzy gets out of control. We still have a slew of earnings that are coming out over the next few weeks but needless to say, in the short-term, the market is way overdue to pullback.
A CLOSER LOOK AT WHAT HAPPENED LAST WEEK…
Mon-Wed Action:
Stocks rallied on Monday, erasing slight losses from earlier in the session, as U.S. lawmakers reached a deal that would re-open the government after it closed Friday night at midnight. Separately, earnings season is off to a good start. So far, nearly all of the big banks are trading higher after reporting Q1 results and nearly 68% of the companies in the S&P 500 that reported earnings beat estimates according to data from CNBC and FactSet. After Monday’s close, Netflix gapped up after reporting solid numbers.
On Tuesday, the Nasdaq and S&P 500 hit fresh record highs as Netflix surged. The video streaming giant said it added 8.33 million new subscribers, easily beating the Street’s estimate for a gain of 6.39 million.Netflix’s stock vaulted over +10% on Tuesday which helped the company’s market cap jump above $100 billion for the first time. Stocks opened higher on Wednesday, but sold off mid-day before rallying back into the close.
Thur & Fri Action:
