For the first week of 2018, major U.S. stock indexes are up the most for any first week, since 2006.
Here's what stock-watcher Zacks has to say on the subject:
First Five Days
The "first five days" trend is like the January barometer but on a smaller scale. If the S&P; 500 finishes higher in the first five days of the year, there is an 86 percent chance the stock market will end the year higher, according to a "Wall Street Window" article written by Matt Rego in January 2012. Some analysts, including Mark Hulbert of Hulbert Financial Digest, claim investors would do better avoiding these trends altogether. In a January 2010 Market Watch article, Hulbert points out that investors scared off by a down January in 1982 would have missed the beginning of the greatest bull market in history: The markets gained 25 percent in the last 11 months of 1982.
P/E ratios are not sacrosanct. This could be the new norm. All economic indicators other
than bond yield curves are strong. Europe is doing much better than it has for a long time.
The only potential shocks I see are geo-political, Italian debt, or Canadian housing bubble,
in descending order of likelihood and magnitude. Of course, if too many Norwegians suddenly
move to the US we could be in trouble, mainly due to a lack of fish balls for them to eat.