The stock market started to surge in the two weeks or so prior to the end of quantitative easing (QE). In other words, it rose in anticipation that QE was ending. This was not what anyone expected and it threw many investors for a loop. This bull market has been like that. It's done a lot of things that haven't made sense. That is, it's been climbing a wall of worry all along. Given this, for investors, it’s probably best to continue to “do what you do” and don’t fight the trend.

Good news for bulls

So what happened? Ongoing better economic signs and low interest rates have been the primary factors driving this bull market higher.

The jobs picture, for instance, has been very impressive.

As Matt Kerkhoff pointed out, October marked the 49th straight month of job creation. This has been the longest winning streak in 75 years. And there’s more. Earnings have been great. About 80% of the S&P's 500 companies beat their profit estimates. So when all was said and done, the Fed obviously decided the economy was strong enough to stand on its own.

Then there were the elections. With the Republicans winning across the board, investors generally feel more comfortable. That's because Republicans are viewed as being good for business and, therefore, good for Wall Street.

Bullish confirmation

The bottom line is the market likes what it sees and it's been going north ever since. The Dow Industrials and the Dow Transports have both been hitting record highs (see chart).

This has triggered more Dow Theory bullish signals, again confirming a strong stock market. In othe words, the bull market since 2009 remains intact, and it's going to rise further. It also suggests the economy will continue to do well in the months ahead.

Caution persists

Nevertheless, there always seems to be some signs of caution, and this month has not been an exception. Some of our leading indicators, for example, are warning that this renewed rise may not be long lasting. Time will soon tell, but for now all systems are still go.

Keep your positions

That being the case and all factors considered, we continue to recommend keeping the stocks you have. For now, we don't advise buying any more new stock positions. Even though this bull market could still head higher, it's already risen far and fast, and it's due for a downward correction of some kind. But assuming this bull market stays intact, that'll then provide another good buying opportunity.