Nasdaq Sets A New High; Dow 20,000 Remains Elusive

While a few await tomorrow’s, job report we saw a mixed market with both price and volume ending mixed. Led by the FANG stocks the Nasdaq pushed higher while the Dow continues to chase 20,000. Last week we saw the Dow close below 20,000 for the 121st time in the Dow’s history. When will see the blue chip index hit the historic mark is anyone’s guess. This market continues to act well and until we begin to see major cracks in its foundation we are not about to bail. Stick with the uptrend.

Sentiment continues to lean towards the bulls as the AAII survey once again has bulls above 40%. Bears dipped to the mid-20s, but we are not at extremes on either end. NAAIM Exposure index fell below 100% to 99%. Active managers are still in bull mode. Unlike the prior three weeks there were no bearish bets placed by active managers. Despite the market just under all-time highs the amount of bulls in the market is not where you would expect it to be. The AAII Bull respondents have yet to eclipse 50!

Tomorrow’s job report will certainly provide some fuel for the market tomorrow. Whether it means we continue to push higher remains to be seen. This will be the first full month report of hiring after the US election. Will jobs be coming higher than 200k? Can we get 300k or higher? The push towards automation via robots and AI it is hard to fathom we’ll have job growth blowing doors off the place. We’ll simply follow price with our portfolios, but hope there is at least some job growth to write home about.

We will see how the first week closes. So far so good in the year 2017. Hard to believe time flies so fast. Keep grinding and always keep those losses small.

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