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The Seemingly Unstoppable US Stock Market

Stocks keep rising as the Fed keeps expanding its balance sheet, but the virus outbreak in China is worth watching closely.
One CTA told me: "I don't carry overnight positions any longer. It's too risky. One tweet from Trump or an announcement from China, and you're cooked."
The short answer is yes, but the better questions may be: Should it? And how aggressively?
The market is sending a slowdown signal but it remains to be seen whether the pullback is just a temporary one or the start of something more ominous.
The S&P 500 appears to be too far ahead of its earnings cycle for a sustained break-out to occur, hence our underweight stance on US equities.