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There has been a dramatic turnaround in the market this month. After falling for three straight months, the S&P 500 has rallied 7.6% in the first three weeks of November. The main reason for the turnaround is interest rates.

If the current Wall Street expectation that the benchmark 10-year Treasury rate peaked at 5% is true, it should be positive for stocks, or at least eliminate a big negative.

The current consensus is very positive. Inflation appears subdued, the Fed is done hiking rates, and the economy is nowhere near a recession. It appears that we are having a “soft landing,” where the market gets through this rate-hiking cycle without the usual economic pain. Of course, things can change. The positive situation could discombobulate next year.

We’ll see what happens in the new year. But the prognosis for stocks looks good for at least the rest of the year. It’s a good time to take advantage of stocks that have risen to new 52-week highs and command high-priced calls. In this issue, I highlight sizable covered call premiums for recently surging Intel (INTC) and the first call for Digital Realty Trust (DLR).

The market has had seven consecutive higher weeks. And the positive momentum should continue into the new year.

The S&P 500 is up 12.5% in the last seven weeks and 23% for 2023. But those returns are deceiving. Until the market rally broadened out recently, only seven large technology company stocks accounted for nearly all the gains.

Many stocks are still in a bear market. In fact, certain more interest rate-sensitive stocks recently fell to the lowest level since the trough of the pandemic market more than three years ago, although they have rebounded with falling interest rates recently.

Buying stocks in the throes of a bear market has proven to be a winning strategy over time. Buying stocks after they have already started to climb out of the lows has proven to be a winning strategy sooner.

The timing may be perfect for a rare opportunity to generate much higher returns than can normally be expected from stocks of defensive companies. In this issue, I highlight a defensive stock that had been a stellar performer before inflation and rising interest rates took hold. It is priced near the lowest valuations in its history and has recently been generating upward momentum.

The market sobered up in December after a big post-election rally in November. The S&P fell 2.5% in the last month of the year. But January has started out with stocks up 2.2% already.

Technology is driving the market higher. The sector is taking off after Nvidia (NVDA) issued bullish statements about demand for its artificial intelligence chips. AI is a huge growth catalyst for the market’s largest sector and has proven it can drive the indexes higher all by itself. In fact, technology has been the primary catalyst for the S&P over most of this bull market. But things might be changing.

The market has been choppy and unpredictable. Optimism about a “soft landing” is being tempered by rising interest rates. Either the strong economy or high interest rates will dominate the market in the months ahead. We’ll see.

But what seems to be quite clear is that the economy is solid for now. Third-quarter GDP is expected to be over 5%. Even if the economy does slow, it will likely take several quarters to slow from here. That means gasoline demand should remain solid. And that should be good news for refiners.

In this issue I highlight one of the best performing large company stocks in the energy sector over the last several years. It is also one of the few plays out there that still has solid momentum, as the stock remains in an uptrend that began three years ago.

Good momentum means high call premiums as more investors are willing to be on higher prices in the future. The refiner stock highlighted in this issue has a great chance of providing the opportunity to sell covered calls in the near future. It should help generate a high income in this uncertain environment.

AI is the catalyst driving the technology sector, which is driving the market higher. Over the last month, the tech sector is up 10.42% while the S&P is up 2.95%. Seven of the 11 sectors are negative for the past month.

But technology stocks may be running out of gas. Without the heavy lifting from technology, it’s easy to see the overall market trending sideways or down, at least for a while.

Income is king in markets like this. The register still rings when the market stumbles. There’s also an opportunity right now. With the S&P and many stocks near their 52-week highs, it’s a good time to get high call premiums. Also, you can lock in strong total returns from these stocks if they are called.

Even the best bull markets have ups and downs. We can play the increased likelihood of a flat or down market by priming the income pump to pay us through the rough patch. In this issue, I target another covered call that will enhance the already exquisite income of a monthly dividend stock.

This is a huge week for earnings and economic news. Maybe, just maybe, the market will be driven by something other than tariff news.

This week, 180 of the 500 S&P companies report earnings, including several of the big tech companies. On Wednesday, first-quarter GDP will be released. Jobs and inflation reports also come out this week. The consensus expectation for first-quarter GDP is 0.10%, way down from 2.4% in the fourth quarter.

Things are certainly looking up in the market. The S&P 500 had an epic nine-day run of positive gains, the longest such streak in more than twenty years. The index rose over 10% during the streak. What’s going on?

The rally began after President Trump indicated a de-escalation of the trade war with China. There are ongoing negotiations with the other trading partners during the 90-day pause initiated on April 9^th. A perception is building that the worst of the tariff uncertainty is behind. Stocks also got a boost from earnings and economic news.

The market has leveled off since the huge recovery from the tariff Armageddon fears. And now, who knows.

The sticky issue to start the week is increasing trade tensions with China. A war of words is escalating between the two governments and threats are being made by both sides. It is being reported that President Trump will speak with Chinese President Xi today or later this week. Hopefully the two leaders will bring down the temperature.

After bouncing around for a few weeks, the S&P is moving higher again. The index is now just about 2% below the high and may rally this month.

The tariff story continues to play out. The market made a huge recovery after the initial fears in April as investors wrote off a disaster scenario. Now, talks are dragging on, and the market still can’t move completely past the issue. But good economic news was a pleasant surprise.

What shutdown? What tariffs? The market couldn’t care less. It just keeps moving higher.

After making a series of new highs throughout the summer, the S&P had a great September. October looks good so far, too. Stocks are being driven higher by technology and the artificial intelligence trade. The technology sector is up 9% over the past month.

The market is enduring the post-summer market well, so far. The expected Fed rate cut is pushing stocks higher.

There are few things Wall Street loves more than rate cuts. And there is one almost surely on the way. Traders are assigning better than 90% probability to a cut. But speculation is growing as an increasing number of analysts expect a 0.50% cut, instead of the usual 0.25%.

Stocks made another new high this week as investors expect a resumption of Fed rate cuts on Wednesday.

The Fed Chairman indicated that the fed funds rate will be cut at the September meeting during his Jackson Hole comments last month. Wall Street traders are pricing in a 90%-plus probability of a 0.25% cut on Wednesday. And consensus expectations are for two more such cuts before the end of this year.

This will be an important week for a market that’s been floundering.

The S&P 500 is still in an uptrend that began in April. The index is up 14.5% year to date and within 3% of the high. But stocks are down 2% so far in November as investors fret about technology.

A growing chorus of concern regarding artificial intelligence valuations is dragging on the market. Several analysts believe AI stocks have gotten ahead of themselves. Technology has pulled this market higher all year and for most of the bull market. A pullback in those stocks will likely drag the index lower.

The bull market continues to roll on. Stocks are hovering within bad-breath distance of the new high made just last week.

Why shouldn’t the market keep climbing? We are in a Fed rate-cutting cycle. There’s no sign of recession. And the artificial intelligence catalyst is driving projected earnings in the market’s largest sector into the stratosphere. It looks like stocks want to move higher and will continue to do so unless something pops up that makes them go down.

The S&P 500 started the week on another up note. But the index return is deceiving.

The S&P is being pulled higher by a handful of technology stocks. But 400 of the 500 stocks and nine of the 11 sectors were lower on Monday at midday. The earnings season so far has reaffirmed a positive outlook for artificial intelligence investments. That helps drive the index higher as technology stocks represent more than a third.

Stocks started off this week much higher as the end of the government shutdown seems likely. The newfound strength comes off a sluggish month for stocks and could signal a new surge higher.

The shutdown has lasted over 40 days, and investors began to worry that it was negatively affecting consumer confidence and could lower GDP going forward. Ending the shutdown does take some risk off the table. At the same time, some bullish forecasts have come out for 2026, citing rising overall earnings and continuing AI dominance.

The market took a big hit for the first time in quite a while last week. But it is recovering nicely so far this week.

After spending most of the summer and September making a series of new highs, stocks suddenly reverted to last April’s form on Friday. The S&P 500 fell 2.71% and the Nasdaq fell 3.56% in one day. It was tariff news that caused the carnage.

Stocks started this week on a strong note. After sluggish performance over the past month, the S&P 500 is gaining steam.

Investors are focusing on the promising earnings season and a tamping down of tensions with China. The Trump administration has moderated its stance on China and will meet with them in the weeks ahead. Meanwhile, earnings season is heating up with Tesla (TSLA), Intel (INTC), Netflix (NFLX), and Coca-Cola (KO) reporting this week.

Welcome to 2026! Sure, the year technically began on Friday. But nobody cared. The Monday after New Year’s is when the rubber really hits the road. And the year is beginning on a positive note.

This is hopefully the year when the bull market broadens beyond technology and AI. The stage is set for that to happen. The rest of the market is a lot cheaper. The economy is forecasted to strengthen. The Fed is in a rate-cutting cycle. Inflation is benign. And earnings growth is expected to improve.

So far, so good. On just the seventh trading day of the year, the S&P 500 is already about 2% higher. Early 2026 performance is indicative that stocks want to go higher.

A look under the hood tells an interesting story. Cyclical stocks are booming. The sectors are killing it so far in 2026 with materials, consumer discretionary, and industrials leading the pack, with stunning YTD returns of 6.78%, 5.82%, and 4.43% respectively. Investors are betting on a strong economy in the new year.