The Easy Drift

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It seems that nighttime is the only time that the markets have any dalliance with the color red, because in short order, any brief weakness is eradicated in favor of the market’s official color of 2019: green. As I said yesterday morning at about the same time:

So in case anyone is wondering why, as usual for almost every day since December 26th equities are up across the board, the answer is a simple one and can be used for the foreseeable future: because they didn’t see any reason NOT to be.

Thus, we remain in “drift up” mode. We all know the habit of markets to move quickly when going down and slowly when moving up (which some refer to as – ahem – the slope of hope). You can see it clearly below: from December 3 to December 26th, it was just a gravity-tormented free-fall. Ever since Boxing Day……..just a grind higher and higher. Slow. Steady. Relentless. And probably persistent until this whole China Trade thing is settled.