In a sense the current environment is just working-through-it until small & mid caps get some breathing room as share ownership shifts from tax-loss sellers to initially patient investors looking for 2022 gains in such stocks. 

In-sum: of course we had the better Jobs numbers (broken-down above) as well as upward revisions of prior data. Great; and go figure how the 10-year managed to move a bit lower concurrently; which stocks liked, but is strange, unless you believe the Fed really won't do anything much until 2023.

So as this grinds higher, we do not short this market (wise all the way since of course the identified low of March 23rd last year); but we also don't chase the mega-cap 'Grand Dames' of the era. Own a couple, missed a couple; but the buys (like AMD, Chevron, or more recently Ford) were at far lower levels. I'm not even mentioning companies like Apple that we first liked at 12 but traded out of for a solid gain then back in around 57 split-adjusted. Long time ago. I'd say AMD was long ago; but it's really not quite 3 years; and it's now a leader.

And the S&P? Trend is up; backdrop 'seems' fine; bond bears might have got caught short (otherwise no real reason for the lower 10-year yield); and yet it is at extremely high levels overall. Just as the Fed comforted investors; the pill comforts 'expectations' of normal life; so you hear numbers like 4800-5000 on S&P. Doesn't mean next year's prospects justify it; but the trend is the trend, until it isn't. Near-term could get a little shaky; with some alternating swings.

The mood is that we (as a Nation) are coming out of the woods coping with an impossible pandemic that we (unfortunately) had to warn about before our US Government acknowledged it as a problem. It was and still is a horror in some areas; and as a survivor of 'severe Covid' myself, I attest it's no picnic at all.

At my age I'm not inclined to rush to Disneyworld or movie theaters; but eager to mingle a bit, travel some (not yet international especially); and dine out in a less cautious way, as well as more frequently. And yes, restaurants will do a lot better in 2022; although margins might be pressed a bit. I also note that all the major hotel chains seem to have cut-back on 'elite' guest perks; modifying things.. trying not to be too visible, but intended to improve profit margins.

(Most egregious: hotels in Las Vegas which almost all impose so-called 'resort fees', as since it's mandatory makes regular pricing deceptive. Of course they also do it to avoid paying commissions to online booking services. And some now are nudging up prices by making 'cleaning' rooms an optional service ...) I even noticed that Delta devalued 'frequent flyer' award levels twice during the pandemic; and now eliminated easy international upgrades for 'Diamond' members; and I sort of get that; given that there are too many now since they could attain that just by heavy American Express card spending recently.)

By the way, for those of you pushing-the-envelope on international travel. be a bit aware of returning problems aside from the mandatory negative test. Now there is a shortfall of TSA and Customs and Border folks at major airports. As a 'for-instance' a friend returning from Paris last week had no problem, while others discovered Global Entry biometrics worked; but then all the old choke-points returned. Of 24 lanes only 2 were staffed; and no dedicated diplomat or Global Entry line. Hence 1 guy for foreign visitors; and just 1 working for U.S. residents returning from multiple flights. Hope that was a fluke. A new wider reopening for international visitors starts Monday: so expect bottlenecks. It is not being a fan of Global Entry or even Mobile Passport or Clear; but these exist and at the moment at least at JFK, it seems only Clear works per design; and that's only useful on departures (like TSA), but not international arrivals.

Personally I embrace the return of business travel, which will happen to some degree, as the world isn't moving permanently to Zoom or similar conferences although it will on some levels. It might take a year to fully readjust all of this. I think Delta remains the better play in Airlines; while United is trying hardest.

Barriers to travel remain; not just Europe but the Caribbean and everywhere if you focus on requirements to 'return' to the United States. The current data is actually deteriorating on Covid; with virtually all the rally on the back of newest pills acting like they were 'speed', as it's based on science, but 'aspirational' in terms of assumptions about how quickly this ideally rolls-out. A lack of people to work in the 'experiences' of life (including restaurants) reflects the fear, and a continued reality that we'd be very lucky to have Pfizer's pill by Christmas.

S&P is going to have trouble clawing higher; but it should try even though I do allow for another shakeout. However the Pfizer pill for now limits some risks and increases others; as Friday's market clearly showed.