My previous commentary sharing the analogy of the stock market being like a “helium balloon” has been quite apt of late.
Meaning that its natural propensity is to rise unless there is a stronger opposing force pushing it down.
Let’s talk about the things pressing on that helium balloon and why it is rising once again in recent days.
Market Outlook
Israel bombs Iran...oil spikes...investors press down on the stock market helium balloon with break back below 6,000.
The balloon starts floating higher again as investors digest this news (remembering how many times this has happened over the years with nothing bigger coming of the event).
Then the US joins the fray...and investors push the stock balloon down again.
Then talk of ceasefire and oil prices tumbling allows stocks to quickly rally 2% in 2 sessions and back above 6,000 once again (and now only 1% away from the all time highs).
Yes, there still could be new details on tariffs...or the economy...or Middle East that pushes down the balloon once again. But overall, we have fought off the worst of the bearish fears from April with investors seemingly hungry for the bull to break higher.
My assumption is that the all time highs of 6,147 for the S&P 500 will serve as some kind of interim resistance. But the longer bad news stays at bay...the easier it will be for the stock market balloon to float up to new heights.
This is why being bullish continues to pay the bills of late.
Of course, we continue to have an eye open to anything nefarious that could alter this upward trajectory. But with no compelling bearish narrative in hand...then best to be long the best stocks.
Steve Reitmeister has spotted a fair number of the best stocks to own now. More on that below...
What To Do Next?
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This path has led me to selecting 10 timely stocks and 3 ETFs that will place you on the right side of market action.
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Wishing you a world of investment success!
SPY shares were trading at $607.28 per share on Tuesday afternoon, up $7.13 (+1.19%). Year-to-date, SPY has gained 3.93%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.
Why Are Stocks Floating Higher? StockNews.com
