US Stocks Can Keep Grinding Higher: 3-Minute MLIV

Market Overview - The market currently lacks strong momentum and fundamental threats that would typically shift the narrative [1][2][3] - Absence of imminent central bank meetings and major US data releases contributes to the current market stability [2] - A "black swan" event is considered the only factor that could significantly alter the market narrative [2] Potential Risks - An overstretched market could trigger an internal correction [3] - A year-end dollar rally is identified as a potential source of pressure on existing positions, with possible spillover effects [4] - A stronger dollar could tighten financial conditions globally, impacting assets priced in dollars [6] Gold Market - A stronger dollar negatively impacts gold, as gold is often inversely correlated with the dollar [6][7] - Higher yields also put pressure on gold prices [7][8] - Short dollar positions and consensus long gold positions are vulnerable to a dollar rally [8][9] Outlook - Equities are expected to continue grinding higher despite concerns [10] - A significant internal hurdle is needed to disrupt the current upward trend in equities [10] - Expect a dollar bounce, which is probably bullish [10]