Despite the ongoing election controversies and COVID-19 cases still rising, November was a great month for equity markets. The S&P 500 rose over 10% and reached all-time highs. And importantly, there were positive developments on the vaccine front. This has shifted investors’ outlooks away from the current negative pandemic data to an optimistic future that will likely see the U.S. and Global economies start to reopen and begin the much-needed healing process.

While there remain a number of uncertainties from rising COVID-19 cases, to vaccine implications, to potential fiscal stimulus packages, to who may ultimately control the Senate, I see higher highs ahead for equity markets. Our research continues to suggest we are in the early innings a powerful profit cycle that, combined with a favorable fiscal and monetary policy backdrop, will push equity prices higher. Investors should keep their focus on the bigger picture — 6, 12, and 18 months ahead.

On a tactical basis, our key indicators flipped favorable on 11/2 and based on this week’s review are still rising, which keeps us tactically re-aligned with our medium-term bullish stance. Looking closer into the S&P500, our highest-frequency and most aggressive tactical tools are still rising from their last buy s...

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