What a great week for the major indices as they all posted double digit gains. In the week prior to the presidential election we saw an impressive bounce (or rally) with the small caps leading the way. Yes, the Russell 2000 ($IWM) posted a 14.1% gain this past week followed by the Dow with an 11.3% gain. The Nasdaq posted a 10.9% gain while the broader index closed the week with a solid 10.5% gain.
Historically speaking, at least since 1950, the month of November has been a pretty decent month for the bulls. In fact, November has the reputation for serving as a starting point for several 6-month rallies. There’s no question that the stock market could use a bit of a bull run with all the major indices down over or near 30% for the year.