Weekly Market Outlook: Stocks and Cryptos Enter New Territory

We are reaching a point where, even for bulls, this market has become hard to believe. We have not quite reached extreme sentiment on either side and we have no glaringly important economic data this week. So what could bring this market to a correction? My answer is time, and we are reaching an important window over the next week in stocks.

As I alluded to in our outlook two weeks ago this market is a very strong bull market and is not something that should be bet against. We have seen time and time again over the last year that this market defies gravity. I’m not saying it will forever, in fact I fully expect volatility to pick up this month but when everyone wants a big discount on the prices they don’t usually come.

February was unusually strong for the stock market and, as you can see in the image, that signals the following month is likely positive.

Additionally, looking at a long term election cycle we can see that when the sitting president is running the market typically has a strong year on the whole. The exception being the window we are about to enter here in March.

If we look at the S&P 500 weekly chart