E Market Briefing For Monday, March 6

Mounting evidence of stretched valuations, amid droning debates about‘how high is high’ and ‘can this keep going’ discussions, have not combined to derail our primary uptrend from Election Day to this point. We have noted this every day and every week during our consistent four-month bullishness.

While a likely ‘test’ of the past week’s high becomes rather crucial ‘in theory’; there’s no technical analysis (yet) which would somehow deny the prospect of a first sell-off (the past week’s pullback was merely normal ‘inside day(s)’ consolidation as I described; including Friday’s forecast afternoon rebound above a semi-demarcation point in March S&P futures near the 2380 level). 

On Saturday you got more political skirmishes (and so far they are limited to this insane and counterproductive jockeying between the sides), this time a suggestion that more Democrats met with more Russians than Republicans did; or that President Obama had Trump Tower ‘wiretapped’ before the vote. 

All of it is degrading and attempts to disrupt the focus of the Administration; as many apparently want the nation not to grow; to repatriate jobs; or even go forward in a world of relative peace and stability. It seems some thrive on anxiety,global tensions and actually are fearful of international harmony. 

And it is this realm that matters to the markets. Stocks are up not because a ‘technical’ chart or ‘fundamental’ table of projections says so but based on a vision of a better and stronger America; not isolationist, but not trampled on by a few countries in particular, that took advantage of trade relationships. 

It also requires the ball not be taken off healthcare and particularly the ‘tax reform’ expectations, that really are at the heart of corporate (bank stocks of course as well) earnings growth expectations, even before real GDP gains are reflected in the economy.