S&P 500 On Pace To Increase Over 100% In 2019

S&P 500 - Massive 2019 Rally Continues

2019 has been a spectacular year for stocks as the S&P 500 is up 6.3%. If the stock market were to go up 6.3% every month it would be up 108% for the year. We know that’s almost impossible.

The goal is to highlight how great this month has been and that it won’t continue. S&P 500 is up 13.34% since the Christmas Eve low. Now it’s only down 9.08% from the September record high. Personally, I see no reason for the stock market to make new records in 2019. But the possibility needs to be considered since it is getting close to occurring.

S&P 500 was up 0.85% and VIX fell 7.78%. Yet the CNN fear and greed index was stuck at 58 which signals greed. The S&P 500’s 14-day RSI is 56.8 which is relatively normal.

It’s interesting to see how both these indexes aren’t picking up on this very overbought market. The Nasdaq and Russell 2000 outperformed the S&P 500 as they increased by 1.29% and 1.26%. It’s interesting to see how Intel’s decline of 5.47% didn’t impact the Nasdaq much.

Clearly, not many investors in Amazon and Microsoft see a reason to worry even though Western Digital and Intel talked about cloud weakness. Microsoft and Amazon are up 5.98% and 8.54% year to date.

Only the consumer staples and utilities sectors fell on Friday which makes it a perfect ‘risk on’ day. They fell 0.24% and 1.33%. The biggest winners were materials and technology as they were up 1.92% and 1.45%.

S&P 500 - Government Shutdown Ends Finally

Politicians’ most favorite thing is to kick the can down the road. It’s great for them because it delays tough decisions, while not having to deal with the ramifications of any decision and not making one.

The government shutdown ended on its 35th day. According to S&P, the shutdown cost the government $6 billion. Even though politicians had 35 days to negotiate, nothing was agreed upon. Therefore, the government will reopen only until February 15th unless a deal is made.

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