One month in, it may be useful to look at various metrics to see where the stock market stands. At the beginning of January, the Bull cited the January indicator. How did it turn out? The first five business days were positive. The month is closing out as positive, too. Remember, this indicator has a 70% history of predicting the year. So, one metric for the bulls.

The money flow model that we follow has recently turned negative. This model has had an 80% predictability record. This metric is shorter-term oriented, so it may not be as important for predicting the entire year. However, it is one metric for the bears.

Earnings for the most recent quarter and year are still being reported. So far, they are looking strong. The large banks, which tell us a lot about our economy, have had record earnings and are forecasting continued growth. So far, so good. Chalk another one up for the bulls.

U.S. GDP growth looks to be coming in above expectations. The fourth quarter may have grown at a 4-5% rate. This is astounding. The current quarter appears to be off to a good start, too. Add a strong economy as a plus for the Bulls.

Nothing is certain, but things are looking good. Certainly, investors are bound to be periodically rocked by volatility. Unpredictable events can always happen. However, on balance, being positive is warranted. Stay steady my friends.

-The Lonely Bull