A New List of 30 Old Reliables

Editor's note: Jon D. Markman writes a weekly column for CNBC on MSN Money that is republished here on TheStreet.com. He's also a regular contributor to RealMoney, TheStreet.com's subscription site. If you'd like to see all of Jon Markman's RealMoney commentary, click here for information about a free trial.

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The powerful post-election rally has taken a lot of investors by surprise, emotionally and financially. One minute you're in a groove, thinking all of your decisions about your cash, equity and real estate asset allocations are smart. The next minute, you wonder if you're an idiot for not having more money in stocks.

That's why it's ironic that the sharp upward spikes in the market after long periods of decline or consolidation are referred to as relief rallies. The fact is that most investors view them more with suspicion and confusion than relief due to the painful quality of the preceding period.

Yet the urge to deploy some cash now that the market has gotten up off the mat is strong. And it might actually make sense to give in to it this time. All of the major indices have tenaciously battled the bears and won, finally moving to small single-digit gains for the year. Oil prices are down, inflation is stable, retailers are reporting decent seasonal sales, and the economy is healthy enough for the Federal Reserve to raise interest rates.

Moreover, Paul Desmond at Lowry's Reports, a research service that does a good job of gauging the supply and demand for stocks for large financial institutions, told clients on Friday that conditions look right for at least another four to six months of advance.

Desmond said his key measure of equity-buying pressure had moved to a recovery high, while selling pressure had moved to a new multiyear low. He also noted that his unweighted market breadth index had also risen to an all-time high, suggesting that buyers are interested in all kinds of stocks, not a narrow list of stars. And his ratio of new highs vs. new lows has also risen to a level indicative of enduring strength, not a mere spike.