The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Bull market comfort
Last week’s drama isn’t carrying forward and investors are seeking risk again. Overseas markets rallied nicely but US futures traded down a bit in the premarket. This coincided with Bitcoin weakness too so it seems US investors in the early morning were still worried about risk. The S&P opened down about 20 points but regular hour trading pushed the tape into positive territory quickly. Dip-buying reflexes are strong and the absence of a specific and material bearish catalyst gives the longs comfort in adding to their positions. The yield curve did very little and the Dollar weakened a fair amount.
Today’s rally was quite pedestrian. Volumes were about normal, advancing vs declining was balanced, and the tape never zoomed around, the move over the day was consistent without jumps. This is the kind of price action we saw last summer, and in the other uneventful climbs of this bull market. It certainly looks like investors are comfortable with stocks. They are on board with the fact that 2026 looks like a fourth year of a bull market and they might as well participate since they believe there are many more bullish years ahead.
It is interesting that while the confidence in the bull market is high, investors aren’t scrambling to get long. They are taking small consistent bites of the tape. It’s a patient group of buyers at work.
Maybe after so many years of learning to dip-buy, the market has tossed out the notion of chasing offers haphazardly higher. There’s a slow and steady component to the post-dip run lately.
The S&P is now about 35 points away from all-time highs. It seems a foregone conclusion that we’ll print new ones this week. And then what? And then the bull continues. Not running but sauntering.
See you tomorrow.
-Mike
Visdom Market Commentary
IMPORTANT INFORMATION
This is general educational information and market commentary and is intended for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction.
All market and economic data herein is as of the date hereof and sourced from Bloomberg unless otherwise stated. The information is subject to change without notice and we have no obligation to update you.
This general market commentary is intended for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The views and opinions expressed constitute the author(s) judgment based on current market conditions, are subject to change without notice, and may differ from those expressed by other employees of Visdom Investment Group LLC ("Visdom") and Visdom. Past performance and any forward-looking statements are not guarantees of future results. It is not possible to invest directly in an index.
We believe the information contained in this material to be reliable and have sought to take reasonable care in its preparation; however, we do not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. Any securities referenced are shown for illustrative purposes only, and are not intended as a recommendation or endorsement by Visdom or by the author(s) in this context. The information presented is not intended to be making value judgments on the preferred outcome of any government decision. This information does not constitute Visdom research, nor should it be considered a recommendation of a particular investment strategy or an offer or solicitation for the purchase or sale of any financial instrument. Investing involves market risk, including the possible loss of principal. You should speak to your financial advisor before making any investment decisions. Visdom and its affiliates do not provide legal, tax or account advice so you should seek professional guidance if you have questions.
