More Exuberance but Not Yet Irrational

Amazon, Alphabet (parent of Google), Microsoft, and Intel had outstanding earnings and their stock prices advanced significantly on Friday.   Apple and Facebook, which report this week also advanced nicely.   These tech stocks (excluding Intel) gained $181 Billion in market cap on Friday.

Definitely, more exuberance. (Even I am starting to want to put more funds in these names.) However, it doesn't seem irrational yet.

First, the bears haven't capitulated.

Second, my beaten down stocks are still at or near their 52 week lows.

Third, oil is higher but no where near $100/barrel.

So while I remain cautious, I expect the market indices to continue grinding up and lengthen the most unloved bull market ever.

Disclosure:   At the time of posting, we owned shares of Amazon, Alphabet, Apple, Facebook, Intel and Microsoft.

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