The new week has again started with gains, with short-covering and speculative buying providing a foundation for more upside.
Stocks gain ground, defying doubters
“Everyone continues to look for the beginning of the next leg lower, but it stubbornly refuses to begin. Friday’s jobs report seemed to provide the spark, but the new week has begun with gains as investors continue to take the positive view. In a potentially-worrying development, meme stocks are once again surging, a sure-fire sign that risk appetite is just getting a little bit frothy. But for now there seems little point in fighting this move.”
Quiet calendar aids the buyers
“The calendar of both macro events and earnings has eased off after the frenetic pace of the past few weeks, which tends to give a helping hand to stocks on their upward path. But US CPI this week could be the trigger for another drop, so late-comers to the rally need to be fairly nimble at this point.”
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