Raymond James’ Jeff Saut has been pretty constantly bullish since mid-2009, and he’s still pretty optimistic.
But even he’s having trouble fathoming the strength of this market.
In his weekly note, he writes:
The call for this week: There have now been 37 trading sessions in 2012 and so far the S&P 500 has yet to experience a 1% Downside Day. This 37-session, or more, skein has occurred 11 other times in the past 84 years and has on every occasion except one seen the equity markets higher by the end of the year. Still, the rise since the “buying stampede” ended, which stopped on January 26, 2012 at Dow 12841.95, has felt unnatural to me.
Surprisingly, the Industrials reside only 141 points above their intraday high of January 26th causing one market maven to exclaim, “no wonder I feel like we’re in the Trading Twilight Zone.” Maybe there will be a resolution to that “unnatural feeling” this week when we experience Leap Day (February 29th).
For more along this theme, see Tobias Levkovich, another bull, who thinks this rally might run out of gas.