Should investors be worried by all of this political unrest?

Free After-Hours Analysis: 

Wednesday was a shockingly bad day for American democracy. But as dramatic as the pictures were from inside the Capitol, the stock market barely flinched.

As I wrote Tuesday:

It doesn’t get any more straightforward than this. [The S&P 500] is buyable above 3,660 and sellable/shortable if the index falls under this level.

The index opened just above 3,700 support and that was all the confirmation investors needed that Monday’s selloff was truly dead. A couple of hours later, frenzied buying pushed prices 80-points higher and the S&P 500 was carving out yet another intraday record high.

Unfortunately, the afternoon unrest at the Capitol dampened the market’s mood slightly before the close. But finishing up 0.5% on a day when the U.S. Capitol is ransacked by an angry mob shows just what a bizarre period in history this is.

As I often say, if the market doesn’t care about these things, then as investors, we shouldn’t care about them either. While it seems like the world is crumbling around us, as long as stock keep going up, there is only one way to trade this. A market that refuses to go down on bad news is one that clearly wants to go higher. Stocks took a breather in December and now they are rested and ready to start charging higher in January. There is only one way to trade this stubborn strength.

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