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Meanwhile, over half of all public companies’ stock prices are now above their own 200-day moving averages. This is up dramatically from only 25% last year. Money has already begun to shift out of the handful of favorites. This is positive for the markets, just not for the indexes.

SPDR S&P 500 Trust (SPY)

That said, the new 52-week low list expanded again. The advance/decline lines have once again deteriorated and look too weak for comfort. This is a dangerous market. Do not chase anything here. Be patient. Even great stocks pull back.

As for the economy, inflation is 3%, while bonds yield 4.5%. Move on. There is not much more to think about here. This is a time to own rather than lend. You just need to own the right things.

The pro-growth and America-first policies of the new administration are the real key. They have kick-started small business, consumer, and stock market optimism. Despite obstacles and potholes, the environment is now set for winners to win. Just do not count on a straight line up.

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