Your Tuesday Blip 1/12/21

Your Tuesday Blip 1/12/21

Economic optimism based on vaccines and stimulus continue to feed the bull. The Dow posted a gain of 60 points to 31,068. Trading volume was higher on the day and both IBD and BTS continue to list markets in rally mode.
"This market refuses to traffic in everything that's going wrong and instead focuses on what could go right," Jim “Mad Money” Cramer declared yesterday as he reflected on markets trading at all-time highs amidst pandemics and political upheaval. This sentiment appears to be viewed by traders who are now focused on the fourth quarter earnings season which kicks off this week. The gurus right now are betting that overall earnings will decline 12%. Investors will be looking for clues of economic health as data about sales, margins and forward guidance gets reported. For 2020 Wall Street is estimating an overall decline in S&P 500 earnings of 16% but looking ahead to 2021 consensus is predicting an overall earnings growth rate of about 23% with strong rebounds in industrials, materials and financials. As they say in Switzerland…..only time will tell.