What a week in the stock market with the S&P continuing its run, closing the week up nearly 5% with a 2.5% explosion Friday after a jobs number came in better than expected. What that information tells us, is the market is pricing in a fast recovery following the Covid-19 shutdown. We continued to see the rotation into the more cyclical stocks, which, for the most part are still well off highs. These names can continue to run and lift the market with it.
Still plenty of opportunity out there, it has been paying to stick with your ideas and hold onto stock. The market is overbought, but can remain overbought for periods of time and we haven't seen any real weakness in a few weeks.
Saw a stat over the weekend -- the S&P has been up >3% for three consecutive weeks. Since WWII, that has happened only one other time, September 1982. The S&P was up another 25% from that point six months later.
It appears at this point we'll walk into a Monday gap up, so when coupling that with Friday's massive gap up, it will be tough to get into new positions. We will see how the week goes and where that strength heads.